>I wonder how the Russian government feels about the end-2-end encryption?
It doesn't matter that much. Once the data is kept within the country it can start demanding keys and all sorts of things. I presume this is all assuming users tick the "I'm a Russian" box.
While I dislike Putin's actions and rather doubt his pure motives, this is actually the correct way to do it. Legislate for your own country, not the American way of deciding you rule the earth.