Google Russia Files For Bankruptcy
Google’s Russian business is filing for bankruptcy, the first major tech company to do so in the region.
The Russian subsidiary made A$3 billion in 2021, employing over 100 workers.
The seizure of its bank accounts, the March suspension of ad sales in the country, and a fine of 7.2 billion roubles (A$140.5 million) for failing to take down material Russia deemed illegal have all lead to the end for the Russian arm.
“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 Google spokesperson. “Google Russia has published a notice of its intention to file for bankruptcy.”
A note posted to Russia’s official financial registry, reads:
“Since March 22, 2022, it foresees its own bankruptcy and inability to fulfill its monetary obligations, demands to pay severance payments and (or) the remuneration of staff working or previously working under an employment contract, and (or) the obligation to make mandatory payments within the prescribed period.”
Google’s free services will remain available in the country.
“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 Google spokesperson explained.