Google Russia Files for Bankruptcy
Russia has seized Google’s bank account in Russia. Therefore, the local branch of the company must stop.
“The seizure of Google Russia’s bank account by the Russian authorities makes it impossible for our Russian office to continue operating, paying or having our Russian employees work, pay suppliers and meet other financial obligations,” he said. a company spokesperson told Reuters.
The seizure is in itself separate from the Russian invasion of Ukraine and is primarily a response by Russia to Google’s refusal to (according to Russia) remove illegal content from YouTube. In December, the company was fined 7.2 billion rubles, later increased by half a billion rubles.
According to Reuters, it is the first time that the entire bank account has been seized in addition to fines. That step dates back to some time ago because Google has been unable to meet its financial obligations since March 22.
The bankruptcy has no impact on free services such as YouTube or Gmail. The company’s commercial services have been discontinued for some time after Russia’s invasion of Ukraine. Then some of the employees also left Russia. Those who stayed, however, now no longer have a job.
It is not known how much was in the hijacked bank account. Google has previously announced that its Russian activities amount to only one percent of its total turnover.