Is this the end of Google in Russia?
All indications are that another Western corporation will disappear from the Russian market. According to Reuters, on May 18, 2022, the subsidiary handling Google in Russia plans to declare bankruptcy. This is due to the seizure of Google’s bank accounts by bailiffs.
Causes
We have written before about Google’s response to the war in Ukraine. At the time, a number of restrictions were imposed related to services operated in Russia. At the same time, despite pressure from the Russian government, content that Moscow considered illegal was not removed. This led to a situation where the Kremlin had to take some action.
Russia’s actions
Services provided by Google have not been blocked. Authorities in the Kremlin have decided on financial action. Russia’s Federal Bailiff Service made two seizures of assets in mid-March. It is unclear what amounts they involved. In April, bailiffs confiscated $15 million and blocked accounts belonging to the company. This led to a situation in which Russia’s Google was unable to pay salaries and other financial obligations. At first it was not confirmed whether the seizure of funds would lead to a bankruptcy filing, however, the current Google Russia has already published a notice of intent to file for bankruptcy.
What is the current situation
According to a Google spokesperson, free services such as the search engine and YouTube should continue to work, but the closure of the Russian branch may hamper a number of advertising services.
What’s next?
Google has confirmed that it has moved many of its employees out of Russia. This may partially indicate the possibility of Google’s return to the Russian market, but it will take time and for the international situation to stabilize.
