Yes, it is:
formally forbidden to be in the possession of a device that determines your position with an accuracy of less than 30 meters.
But, as the earlier posts indicate, it is not taken very seriously. You might indeed run into troubles, being officials trying to pry some roubles off you.
However, living in Moscow now for almost a year I also can mention that lots of Russians hav a GPS, such a device is built in a lot of the western cars that are now being purchased into Russia.
My suggestion, do not advertise your possession of the device, and dif you get caught, do not speak Russian, say 'compass' and you'll be fine.
Auke
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