Russian Google subsidiary files for bankruptcy

Google’s subsidiary in Russia has filed for bankruptcy amid Moscow’s ongoing invasion of Ukraine. 

A Google spokesperson confirmed the move to The Hill on Wednesday, saying authorities seizing the subsidiary’s bank accounts made their office unable to function.

“We previously announced that we paused the vast majority of our commercial operations in Russia. 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,” the Google spokesperson told The Hill. 

Google said Russian residents will still be able to access their free services such as YouTube and Gmail. 

“Google Russia has published a notice of its intention to file for 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,” the spokesperson said. 

Reuters reported that a note posted on Russia’s official registry signaled the Google-owned subsidiary’s plan to file for bankruptcy.

“Since March 22, 2022, it foresees its own bankruptcy and inability to fulfil 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,” the company note said, according to Reuters.

Russia’s foreign ministry said earlier this year that Google, along with other major U.S. tech companies, should be held responsible for “inciting war,” as its state communications agency also demanded tech companies stop allegedly discriminating against Russian media in Europe as well. 

Russia’s invasion of Ukraine, which began in late February, led a series of U.S. companies across various sectors to end business in the country while international sanctions have ramped up against Moscow.