Catenaa, Friday, May 30, 2025- A Microsoft subsidiary in Russia has plan to file for bankruptcy, an official note said on Friday, as sanctions and the Ukraine war impact on western brands bite in.
A note published on the official Fedresurs registry said Microsoft Rus LLC was intending to declare bankruptcy.
Russian President Vladimir Putin said this week that foreign service providers like Microsoft and Zoom should be “throttled” in Russia to make way for domestic software solutions.
Microsoft continued providing key services in Russia after Moscow’s February 2022 invasion of Ukraine, but in June 2022, it said it was significantly scaling down its operations due to changes to the economic outlook and the impact on its business there.
The US tech giant had already removed Russian state-owned media outlet RT’s mobile apps from the Windows App store and banned advertisements on Russian state-sponsored media in the days after the invasion.
The TASS news agency reported that Microsoft has three other Russian units – Microsoft Development Centre Rus, Microsoft Mobile Rus and Microsoft Payments Rus.
Alphabet-owned Google’s Russian subsidiary filed for bankruptcy in 2022, saying that the seizure of its bank account by Russian authorities had made it untenable for its Russian office to function, including paying Russia-based employees, suppliers and vendors.
Microsoft continues its gain in the US stock market as the stock has gained by 16.23% since April 30, and the stock is up by 9% so far in the year.
