Google’s Russian unit has filed for bankruptcy following the seizure of its bank account by authorities in the country. This has resulted in the company’s inability to meet financial obligations, including paying staff.
After Vladimir Putin ordered troops into Ukraine, Google significantly reduced its presence in Russia. This included suspending advertising sales and software updates, as well as restricting Russians from purchasing apps on the Play Store or paid-for extras on YouTube.
However, Google’s core services like the search engine, Google Maps, and YouTube remain accessible in Russia. Russian authorities have also stated that they do not plan on blocking Google services.
A spokesperson for Google stated, “We previously announced the pause of most of our commercial operations in Russia. The seizure of Google Russia’s bank account by Russian authorities has rendered our Russia office unable to function, including paying employees, suppliers, and meeting other financial obligations.
“Google Russia has announced its intention to file for bankruptcy. We understand the reliance of people in Russia on our services to access information, and we will continue to provide free services like Search, YouTube, Gmail, Maps, Android, and Play.”
The reasons behind the seizure of Google’s bank account in Russia have not been disclosed. However, the company has faced fines in the past for actions such as suspending YouTube accounts supported by the Kremlin or failing to remove videos under Russian disinformation laws.
Previously, Russian bailiffs have seized funds from Google, including a 1 billion rouble penalty for blocking a Christian Orthodox YouTube channel owned by Konstantin Malofeev, a sanctioned businessman.
Last year, Google was fined 7.2 billion roubles by a Moscow court for not removing banned content.
YouTube has also globally blocked Kremlin-funded broadcasters RT and Sputnik. Prior to Russia’s invasion of Ukraine, Google had approximately 244 employees in Moscow, some of whom have now been relocated to other countries.
In March, Russia blocked access to Facebook and Instagram after Meta, the services’ owner, changed its rules to allow Ukrainians to make death threats against Russian soldiers.
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