I don't know the legalities, every time i look into this issue it comes out inconclusive, but they claim it is legal.
Here is a clip I fished up from the forum on the MP3.ru site:
"According to Russian Law, an organization called ROMS (similar to RIAA) manages all intellectual rights in Russian Federation. All 3rd party destributors licensed by ROMS are required to pay a portion of the revenue (notice, not profit) to the ROMS. ROMS in turn, is obligated to pay most of that money (aside from small portion it needs for operating expenses) to artists. Both Russian and foreign. Under Russian law, ROMS automatically has the right to license ANY intellectual property to Russian destributors, even if the author is not subject to Russian law. Since in order to release music in Russia a copyright holder has to register as such, it automatically gives ROMS the right to license its music..."
more here
http://www.mp3talks.com/showthread.php?t=940
