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A central Microsoft Russian unit files for bankruptcy

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Three years into the war, one of Microsoft's subsidiaries capitulates

Microsoft
(Image credit: Future)
  • Microsoft Rus is about to file for bankruptcy, local reports claim
  • The company reduced its operations in response to the invasion of Ukraine
  • Countless foreign firms did the same already

A key Microsoft subsidiary in Russia is about to file for bankruptcy.

A Reuters report citing “a note published on the official Fedresurs registry” claims, “Microsoft Rus LLC was intending to declare bankruptcy”.

The company has four subsidiaries in the country, according to Tass: Microsoft Rus LLC (primary subsidiary responsible for marketing, localization, and partner relations), Microsoft Development Centre Rus (software development and engineering), Microsoft Mobile Rus (mobile technologies and services), and Microsoft Payments Rus (financial transactions and payment services).

One down, three remaining

Fedresurs, or “Unified Federal Register of Legally Significant Information on the Activities of Legal Entities, Individual Entrepreneurs, and Other Economic Entities”, is Russia's official online registry that serves as a centralized platform for disclosing legally significant information about company and entrepreneurship activities in the country.

Reuters is putting the news in the context of Russia’s ongoing invasion of Ukraine.

The company apparently continued providing key services in the country even after 2022 and major sanctions imposed on the country by Western nations, but in June 2022, it said it would be “significantly scaling down” because of the changes in the economic outlook and the impact it will have.

When it comes to the sanctions, Microsoft participated in a sense, removing Russia Today (RT)’s mobile apps from the Windows App store. It also allegedly banned advertisements on Russian state-sponsored media in the days after the invasion.

Microsoft is not the only company filing for bankruptcy in Russia, in the wake of the war.

Last year, Pepeliaev Group reported “mass bankruptcies” of foreign companies flooding Russian courts. Google’s local subsidiary filed for bankruptcy in 2022, as well, claiming that the seizure of its bank account made it impossible to operate.

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Sead Fadilpašić

Sead is a seasoned freelance journalist based in Sarajevo, Bosnia and Herzegovina. He writes about IT (cloud, IoT, 5G, VPN) and cybersecurity (ransomware, data breaches, laws and regulations). In his career, spanning more than a decade, he’s written for numerous media outlets, including Al Jazeera Balkans. He’s also held several modules on content writing for Represent Communications.

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