Google’s Russian branch plans to file for bankruptcy

Photo by Jeremy Moeller/Getty Images

According to a report, the company will file for bankruptcy in Russia because it can no longer keep the branch. The Russian branch made 134.3 billion roubles in Russia and employed over 100 workers.

The seizure of the bank account by the Russian authorities made it impossible for our Russia office to function, including employing and paying Russia-based employees, paying suppliers and vendors, and meeting other financial obligations.

The sale of ads in Russia was stopped by the internet giant in March. The channels owned by Russian state-backed media were blocked completely by YouTube.

In December of last year, Russia imposed a $98 million dollar fine on Google for not removing illegal content from its platforms. The fine made up about 8 percent of the company's revenue in Russia.

In addition, a Russian TV channel claimed authorities seized 1 billion roubles (about $15 millionUSD) from Google in April after it didn't restore access to the channel's YouTube account. Russia's communication regulator threatened to slap a more modest 8 million rouble fine (about $95,000USD) on Google after it removed illegal videos from its website. It's not clear how much Russia has taken from the internet giant.

A note posted to Russia's official financial registry detailed the intention of Google to file for bankruptcy.

Since March 22, 2022, it has been able to fulfill its monetary obligations, but it has been unable to fulfill its other obligations.

The war on Ukraine appears to have led to the first big tech company to file for bankruptcy in Russia. Apple, Meta, and Microsoft have all suspended operations in the country, but haven't had their Russian branches declare bankruptcy. Russian-backed food delivery startup, Buyk, filed for bankruptcy in March due to the economic sanctions put on the country. McDonald's will leave Russia and sell its fast-food restaurants after more than 30 years in the country.

Although Russia didn't go as far as to ban the services, it did ban them. The company says its free services will be available in the country.

People in Russia rely on our services to access quality information and we will continue to keep free services such as Search, YouTube, Gmail, Maps, Android and Play available.