Updated · Jun 24, 2022
Google’s Russian Subsidiary is Filing for Bankruptcy
Updated · May 19, 2022
On Thursday, the Russian unit said that the seizure of its bank account has made its function “untenable”.
Google’s Russian division has said that it has initiated a bankruptcy process after authorities seized its bank account. This follows a series of confrontations between Moscow and the United States-based company.
“The Russian authorities’ seizure of Google Russia’s bank account has made it untenable for our Russia office to function, including employing and paying Russia-based employees, paying suppliers and vendors, and meeting other financial obligations,” a spokesperson for Google said. “Google Russia has published a notice of its intention to file for bankruptcy.”
The branch employs over 100 workers.
Google’s hostilities with Russia began even before the latter began its military invasion of Ukraine in February.
In December last year, Russia fined the company 7.2 billion roubles ($98 million). It was for failing to get rid of content on its platforms that the country considered illegal.
Google’s decision to stop monetization of the state media on its platforms following the invasion infuriated Moscow. The company ended up blocking the channels completely.
In March, communications regulator Roskomnadzor threatened to fine the firm eight million rubles ($96,759) for promoting “the dissemination of false content” around the war.
Russia has blocked access to several platforms, including Facebook, Instagram, and Twitter. However, it has not done the same to Google services like YouTube.
Google will not remove access to free services for Russians following its bankruptcy.
“People in Russia rely on our services to access quality information and we’ll continue to keep free services such as Search, YouTube, Gmail, Maps, Android and Play available,” a spokesman for the Big Tech firm said.
Daniel is an Economics grad who fell in love with tech. His love for books and reading pushed him into picking up the pen - and keyboard. Also a data analyst, he's taking that leap into data science and machine learning. When not writing or studying, chances are that you'll catch him watching football or face-deep in an epic fantasy novel.
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