Microsoft has not yet publicly commented on the filing. The news follows recent statements from Russian President Vladimir Putin, who this week advocated for the "throttling" of foreign service providers like Microsoft and Zoom to prioritize and foster domestic software solutions.
Microsoft had previously begun to significantly scale back its operations in Russia in June 2022, citing a changed economic outlook and the impact on its business in the wake of Moscow's February 2022 invasion of Ukraine. Despite this, the company had continued to provide some key services in the country. In the immediate aftermath of the invasion, the U.S. tech giant had taken steps to remove Russian state-owned media outlet RT’s mobile apps from its Windows App store and banned advertisements on Russian state-sponsored media.
The note posted on Fedresurs specifically states that Microsoft Rus LLC intends to declare bankruptcy. While Microsoft Rus LLC is moving towards bankruptcy, the status of Microsoft's other Russian units remains unclear. The TASS news agency has reported that Microsoft operates three additional entities in Russia: Microsoft Development Centre Rus, Microsoft Mobile Rus, and Microsoft Payments Rus. It is not immediately apparent how these other units might be affected by the bankruptcy filing of Microsoft Rus LLC.
This move by Microsoft's subsidiary echoes a similar action taken by Google's Russian subsidiary, which filed for bankruptcy in 2022. Alphabet-owned Google cited the seizure of its bank account by Russian authorities as the reason its Russian office became untenable, hindering its ability to pay Russia-based employees, suppliers, and vendors. The current climate underscores the growing difficulties faced by international tech companies operating within Russia, as geopolitical tensions continue to reshape the global business landscape.