A leading technology thinktank has branded Russia's controversial data-storage laws as one of the most destructive protectionist policies of 2016.

The Information Technology and Innovation Foundation (ITIF) based in the U.S. slammed the Kremlin's controversial Yarovaya laws in their top 10 list of “Worst Innovation Mercantilist Policies of 2016,” published on Thursday.

“The law aims to help Russian authorities fight terrorism, but its impact will be felt economy-wide (and society-wide), especially by Russia’s digital economy,” the group said in a report published on Wednesday.

The new law, authored by ultra-conservative United Russia lawmaker Irina Yarovaya, will require mobile operators to store customers’ messages, including photos and videos, for six months.

The decision has sparked outrage from Russia's top mobile phone providers, which claim that building the necessary storage capacity will cost 2.2 trillion rubles ($33.8 billion) and lead to increased tariffs and reduced tax revenues.

Yarovaya has responded to the claims, calling them a “baseless” excuse to raise prices. Communication companies will be expected to comply with the law from July 1, 2018.