Google’s Russian subsidiary will file for chapter, in line with a report from Reuters, with the corporate stating it could actually not maintain the department. The Russian department reported making 134.3 billion roubles (about $2.086 billion USD) in Russia in 2021 and employed over 100 workers.

“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 mentioned in an announcement to The Verge. “Google Russia has published a notice of its intention to file for bankruptcy.”

In March, Google suspended the sale of adverts in Russia shortly after Russia invaded Ukraine. The Google-owned YouTube additionally moved to ban adverts on channels owned by Russian state-backed media and later blocked these channels fully.

Final December, Russia fined Google 7.2 billion roubles ($98 million USD on the time of writing) after it did not take away content material Russia considers unlawful from its platforms. The fantastic made up about 8 p.c of Google’s income in Russia.

As well as, Reuters experiences {that a} Russian TV channel claimed authorities seized 1 billion roubles (about $15 million USD) from Google in April after it didn’t reinstate entry to the channel’s YouTube account. Russia’s communication regulator additionally threatened to slap Google with a extra modest 8 million rouble fantastic (about $95,000 USD at the moment of writing) after it eliminated “illegal” movies from YouTube. It’s unclear how a lot Russia has seized from Google in complete.

A word posted to Russia’s official monetary registry, seen by Reuters, detailed Google’s intention to file for chapter, saying:

“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.”

Up to now, Google seems to be the primary massive tech firm to file for chapter in Russia on account of the warfare on Ukraine. Different firms, like Apple, Meta, and Microsoft have all suspended operations within the nation however haven’t had their Russian branches declare chapter. Russian-backed food delivery startup, Buyk, filed for bankruptcy in March on account of the financial sanctions placed on the nation. On Monday, McDonald’s announced it would leave Russia and promote its fast-food eating places after greater than 30 years within the nation.

Though Russia didn’t go as far as to ban Google’s companies within the nation, it did ban the Meta-owned Fb and Instagram. Google says its free companies will nonetheless be out there within the nation.

“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 Google spokesperson added.


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