Google Russia to file for bankruptcy after Kremlin blockade
Google's subsidiary in Russia will file for bankruptcy after the Kremlin blocked its bank accounts and a loss of 409 million dollars in 2021
Google’s subsidiary in Russia plans to file for bankruptcy and abandon its operations in that country after the authorities have seized its bank account and record a loss of approximately 409 million dollars in 2021.
In a message published by the official Russian registry Fedresurs, it states that “since March 22, 2022, the company foresees its own bankruptcy and inability to meet its monetary obligations.”
The Kremlin’s rebuke of the US tech giant comes after several months of pressure to remove content deemed illegal by Moscow. The company through a spokesman confirmed its situation.
“The seizure of the Google Russia bank account by the Russian authorities has made the operation of our office in Russia, including hiring and paying employees, paying vendors and vendors, and complying with other regulations, unsustainable financial obligations”.
Coercion of technology companies
The embargo of the multinational account in Russia is a strong blow because it makes it impossible to carry out financial transactions and administrative processes, although the authorities do not block access to Google.
The company also indicated that the pressure has increased since YouTube, a company of the same group, decided to “block access to some Russian state-affiliated media, such as the RT channel or the Sputnik agency, as well as prohibit their monetization through advertising.”
The real cause for which the company will declare bankruptcy is currently unknown. If it will be due to insolvency as a result of “the millionaire fines imposed by Moscow for not abiding by its restrictive digital censorship laws or due to open complaints at the request of Russian media.”
The company clarified that despite the closure of the office and its operations on Russian soil, the free services of Gmail, Google Play or YouTube will remain active.
M. Rodríguez
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Source: elperiodico.com