The law as it's actually written in Russian. I believe Kythia is asking a native speaker to read it in it's original form and comment on the translations we're getting.
I haven't read it. All I know it's a law banning propaganda of nontraditional sexual relations to minors.
Nowhere in that can I read or extrapolate 'you cannot be gay and if you are, you are being arrested.' That seems to be a doom scenario created in a lot of media. (At least it is here in the UK and in The Netherlands.)
If you paint your nails in all the colours of the rainbow on the Olympics just to make a statement, then yes you have a chance of being arrested, if you go out of the Olympic Village to a bar, kiss a person of the same sex on the mouth with tongue and all, yes you probably will get arrested. If you fuck your gay partner senseless in your hotel room, nobody will arrest you. There could be debate as to what propaganda
is. I have no idea what the penalty is though.
As for transgenders, I have no idea how that works. Never met one but I guess that is a bit of a vague area, as it would always be propaganda if it's obvious. But in all honestly, how many transgender athletes are there going to the Olympics?