Google’s Russian subsidiary plans to file for bankruptcy after authorities seized its bank account because it can’t pay staff, suppliers, and vendors.
Russian state media reported Wednesday that the U.S. tech company’s Russian subsidiary, Google LLC, submitted a notice of its intention to declare bankruptcy to a national registry, Fedresurs.
The company said in a press statement that it filed for bankruptcy because the “Russian authorities’ seizure of Google Russia’s bank account has made it untenable for our Russia office to function, including employing and paying Russia-based employees, paying suppliers and vendors, and meeting other financial obligations.”
Google, which has paused ad sales and most other commercial operations in Russia, said its free services, including Gmail, YouTube, Maps, Android operating system, and Play store, would remain available for Russian users.
In December, Russia handed Google a 7.2 billion rouble charge for a repeated failure to delete content Russia deems illegal.
Later that fine increased by 506 million roubles due to an enforcement fee.
Google’s Russian subsidiary’s 2021 revenue was 134.3 billion roubles. Google said last month that Russia accounted for 1% of its revenue last year, or about $2.6 billion.