Google Russia will file for bankruptcy after the seizure of accounts

The move underscores Moscow’s deteriorating ties with Western technology companies since Russia’s invasion of Ukraine in February.

“The Russian authorities’ seizure of Google’s bank account has made it impossible for our office in Russia to operate, including the hiring and payment of Russian-based employees, the payment of suppliers and suppliers and the fulfillment of other financial obligations.” That’s what a Google spokesman said Reuters.

“Google Russia has published a notice of intent to file for bankruptcy.”

A note published in the Russian national register Fedresurs confirms that Google’s subsidiary plans to declare bankruptcy and – as of March 22 – has foreseen “inability to fulfill its financial obligations”.

In April, a Russian television channel said authorities had confiscated 1 billion rubles (about $ 15 million) from Google Russia for failing to restore the government’s YouTube channel.

However, it is unclear whether the seizure caused Google to go bankrupt.

A database of Russia’s Federal Bailiffs Service shows that authorities have made two seizures since mid-March, involving assets and property.

Despite the impending bankruptcy of Google, its free services will continue to function normally in Russia. This will include Gmail, Android, Google Maps and the Google Play Store.

The Russian government has also confirmed that it does not intend to restrict YouTube in the country, despite repeated threats and financial sanctions.

Google relocated many of its employees outside Russia after February 24, when Russia invaded Ukraine. According to Wall Street Journal, many Russian Google workers chose to leave nation and continue to work for the company outside of Russia. Most ended up in Dubai, where Google has a large office.

Some employees chose to stay in Russia and are no longer employed by the company. About 100 people worked for Google Russia before February 24.

Google has been criticized by Russian authorities last year for failing to delete content it deems illegal.

In December, the government fined Google 7.2 billion rubles (about $ 113 million), the country’s first revenue-based fine.

According to the bailiffs’ archives, the fine was increased by 506 million rubles due to enforcement costs.

Google halted most of its business in Russia, including all advertising, in March. Last month, Russia was said to account for about 1% of its sales, or about $ 2.6 billion in 2021.

So far, Google appears to be the first major technology company to go bankrupt in Russia as a result of the conflict in Ukraine.

Apple, Meta and Microsoft have ceased operations in the country, although their local subsidiaries have not declared bankruptcy.

In March, Russia cut off access to Facebook and Instagram to allow calls for violence against Russian forces in Ukraine.