ER readership to go down in Russia

According to the Moscow Times, "Internet providers operating in the Russian segment of the web will be forced to give information about their users to law enforcement agencies, according to a bill posted on the Justice Ministry’s web site."

Of course there are a number of high-priced fines for not complying with the law, which can probably only be circumvented through the usual lines of corruption, but really what's the companiess' incentive not to hand over personal information of their customers?

I know there was no Internet in the first half of the 20th century, but what is this, Russia? Vichy France?!