HomeWinBuzzer NewsGoogle Russia Files for Bankruptcy following Account Seizures

Google Russia Files for Bankruptcy following Account Seizures

Google Russia says it is filing for bankruptcy after authorities in the country seized its bank accounts over reactions to the Ukraine invasion.

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As 's invasion of Ukraine continues, the fallout from outside the warzone continues. As took action by pulling sales from Russia, authorities in the country have been hitting back. Now, Russia is filing for bankruptcy after authorities seized its bank account.

Speaking to Reuters, a Google spokesperson said the filing comes because the company cannot pay expenses, staff, or vendors in the country:

“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

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

Following the invasion of Ukraine, major brands ranging from Microsoft to Coca-Cola have stopped sales in Russia. Google chose its own punishment in Russia, including suspending all payments on Google Play Store.

Russia Hits Back

Russia responded by making its own app store and by seizing Google Russia's bank accounts. While not substantiated, a Russian TV channel reported in April that 1 billion rubles (around $15 million) had been frozen in Google Russia's accounts.

While Google is battling with Russian authorities, the company says its free services like Maps and Gmail are still available in the country. Russia says it will not actively block these services, including YouTube.

Under normal circumstances, Google would be able to flow money into Russia, but at the moment this is not possible. That means all paid services in the country are now unavailable. It is likely this will remain the case for the foreseeable future.

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SourceReuters
Luke Jones
Luke Jones
Luke has been writing about all things tech for more than five years. He is following Microsoft closely to bring you the latest news about Windows, Office, Azure, Skype, HoloLens and all the rest of their products.

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