- The EU has a history of relatively strict data privacy laws, whereas Russia has no credibility in regards to any civil rights. whatsoever.
- The EU is a much larger market than Russia. It's therefore unlikely that any significant companies would choose to leave the EU market and create an opening for local companies. Only a few data centers may be needed in the EU, and they just don't employ people or pay taxes in relevant amount.
- Storage-in-the-EU is not actually a requirement – companies may store data anywhere as long as they can provide for the required safeguards.
- I'm not completely firm on the genesis of the new data protection regulation, but I believe it was actually a reaction to the EU's Court of Justice's rulings (the "right to be forgotten" and the Facebook case). I have a hard time believing Supreme Court justices ruling with protectionism in mind.
Any you could point to? The only stuff I know of the EU regulating on is privacy/data protection (and tax but that's not a tech issue).
Do you think EU's heavy handed regulation on web services is similar? I think you could make the case that it's also a form of protectionism.