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dntlkatmyname

I think that law was just blatant incompetence. For one there is no process for verifying whether or not you actually store anything in Russia. And even then, there's not much of a point in having a physical access to that data unless somebody is stupid enough to store it in plain text.
Nobody really knows. Presumably they just wanted to test it out on some big enough company (even though LinkedIn is anything but big in Russia). What's more weird is that LinkedIn just outright refused to comply, when all they had to do was issue an announcement and maybe rent some servers in Russia (don't even have to use them).