[DominikR]

> They already have the passwords

Which is a good reason to let them continue collecting them indefinitely?

> Also, Russia doesn't and won't force any company to store users' data exclusively under their jurisdiction, as this would not allow any foreign company to operate in Russia, making your arguments incorrect.

You state this as if it was a fact, but there is great uncertainty among lawyers and businesses if the law requires data to be stored exclusively in Russia or if that's not the case. In any way you'll have to ask for permission which they might never grant you if you are a company like Facebook that's storing very sensitive information.

[zzzcpan]

> Which is a good reason to let them continue collecting them indefinitely?

Which is not something your government can forbid or even verify, they have no way of enforcing anything under other jurisdictions. Whatever company says it did or didn't do there - the government has no choice but to believe them.

[DominikR]

Look, I'm a Libertarian as I stated before, I do not even want a government to exist as they are oppressive by nature but I recognise that there's brutal geopolitical competition among world powers.

I can't say with the little information I've got if it is necessary or not but I understand the rationale whereby someone might implement this because they are not willing to bet the survival of their people or their nation on the goodwill of others.