Microsoft’s Russian Subsidiary Faces Bankruptcy
Microsoft Rus LLC, a Russian subsidiary of Microsoft, is set to declare bankruptcy following a notice on Russia’s official registry. This move comes after President Vladimir Putin urged the prioritization of domestic software over foreign services like Microsoft and Zoom.
Microsoft maintained critical services in Russia after Moscow’s invasion of Ukraine in February 2022. However, in June 2022, the company announced a significant reduction in its Russian operations due to changes in the economic outlook and their impact on its business. The company had already pulled RT’s mobile apps from the Windows App Store and stopped running ads on Russian state-sponsored media shortly after the invasion.
According to Reuters, a recent notice on Fedresurs, Russia’s official corporate information registry, indicated that Microsoft Rus LLC plans to file for bankruptcy. Microsoft operates three other Russian entities: Microsoft Development Centre Rus, Microsoft Mobile Rus, and Microsoft Payments Rus, though the status of these subsidiaries remains unclear.
This development is part of a larger trend where foreign tech companies have faced challenges in Russia. In 2022, Google’s Russian subsidiary filed for bankruptcy after Russian authorities seized its bank account, crippling its ability to pay employees and vendors.
The TOI Tech Desk reported that Microsoft has yet to comment on the potential bankruptcy of its Russian subsidiary or President Putin’s recent remarks. As the situation unfolds, the impact on Microsoft’s operations in Russia and the broader tech industry remains to be seen.
