Google Russia to file for bankruptcy after accounts seized

Google Russia intends to file for bankruptcy after local authorities seized its bank accounts, assets and property.

The move underscores Moscow's worsening ties with Western tech companies since Russia's invasion of Ukraine in February.

"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 told Reuters.

"Google Russia has published a notice of its intention to file for bankruptcy."

A note published on Russia's national registry Fedresurs confirmed that the Google subsidiary was planning to declare bankruptcy and - since 22nd March - had anticipated an "inability to fulfil its monetary obligations."

In April, a Russian television channel stated that authorities had seized 1 billion roubles (about $15 million) from Google Russia for failing to restore the Government's YouTube channel.

However, it is unclear if the seizure prompted Google to declare bankruptcy.

Russia's Federal Bailiffs Service database shows authorities have made two seizures since mid-March, which included assets and properties.

Despite Google's looming bankruptcy, 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 penalties.

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

Some employees chose to remain in Russia and are no longer employed by the firm. Around 100 individuals worked for Google Russia before the 24th February.

Google came under fire from the Russian authorities last year after failing to delete content they considered unlawful.

In December, the Government fined Google 7.2 billion roubles (about $113 million), the first revenue-based penalty of its sort in the country.

According to bailiffs' records, the fine was raised by 506 million roubles owing to an enforcement cost.

Google's halted most of its commercial activities in Russia, including all advertising, in March. It said last month that Russia accounted for about 1% of its sales, or about $2.6 billion, in 2021.

So far, Google appears to be the first major tech firm to declare bankruptcy in Russia as a consequence of the conflict in Ukraine.

Apple, Meta, and Microsoft have all ceased business in the nation, although their local subsidiaries have not declared bankruptcy.

In March, Russia suspended access to Facebook and Instagram for permitting calls for violence against Russian forces in Ukraine.