Microsoft unit in Russia to file for bankruptcy
Another major name in Big Tech is preparing to exit the Russian market. A Microsoft subsidiary in Russia is set to file for bankruptcy, according to an official notice posted on the Russian Fedresurs corporate registry on Friday.
Microsoft has yet to issue a formal statement in response to media inquiries, but the move marks the latest chapter in the company’s gradual wind-down of its operations in the country following the outbreak of the war in Ukraine.
Background: From Gradual Exit to Bankruptcy
After Russia’s February 2022 invasion of Ukraine, Microsoft initially maintained certain essential services within the country. However, by June 2022, the U.S.-based software giant announced a significant reduction in its Russian operations, citing a deteriorating economic environment and escalating business risks.
This week, Russian President Vladimir Putin turned up the heat on foreign tech providers. In public comments, he suggested that companies like Microsoft and Zoom should be “throttled” to pave the way for homegrown software alternatives. The pressure appears to be hastening the exit of Western tech firms from the country.
The formal bankruptcy announcement concerns Microsoft Rus LLC, a key entity for the company’s Russian business.
Other Microsoft Entities in Russia — What’s Their Status?
According to Russian state news agency TASS, Microsoft operates three other subsidiaries in Russia:
- Microsoft Development Centre Rus
- Microsoft Mobile Rus
- Microsoft Payments Rus
It remains unclear for now whether these entities will follow Microsoft Rus LLC into bankruptcy or face other operational restrictions. No public statements have been made regarding their status.
This follows a broader trend of U.S. tech firms leaving the Russian market. Alphabet’s Google, for example, filed for bankruptcy in Russia in 2022 after authorities seized its bank accounts, rendering the company unable to pay local staff and suppliers.
Big Tech’s Retreat from Russia
In the immediate aftermath of the Ukraine invasion, Microsoft joined other tech giants in restricting services to Russia. The company removed RT’s (Russia Today) mobile apps from the Windows App Store and banned advertising from state-backed Russian media platforms.
With Moscow increasingly hostile toward foreign tech firms and seeking to prioritize domestic alternatives, the environment has become untenable for many international players.
Since the full-scale invasion of Ukraine by Russia in February 2022, a significant number of major IT companies have either fully withdrawn from Russia or substantially curtailed their operations there. Here’s a list of some prominent ones:
- Apple: Halted all product sales and significantly limited online transactions, including Apple Pay, in Russia.
- Microsoft: Suspended all new sales of products and services in Russia.
- Google (Alphabet): While not a complete exit, Google has stopped new sales of its products and services, and has restricted access to various services like
- Google Play paid apps, YouTube ads, and Google Cloud new sign-ups.
- Amazon (AWS): Suspended shipments of all retail products and halted new AWS sign-ups in Russia and Belarus, also suspending access to Prime Video.
- Adobe: Stopped all new sales and services, including creative software and website analytics tools, and cut off access to cloud services for government-controlled media outlets.
- IBM: Announced a complete withdrawal from Russia.
- Oracle: Suspended all operations in the Russian Federation.
- SAP: Stopped all new sales in Russia and is in the process of winding down its existing business.
- Intel: Suspended all business operations in Russia.
- NVIDIA: Suspended all shipments to Russia.
- Samsung: Suspended product shipments to Russia across its consumer electronics, IT & mobile communications, and device solutions segments.
- Cisco: Announced it would stop all business operations in Russia.
- HP Inc.: Suspended all shipments to Russia.
- Dell Technologies: Ceased all operations in Russia.
- Accenture: Closed its business in Russia.
- Amadeus IT Group: Halted its distribution service with Russia’s Aeroflot and new planned commercial projects.
- Autodesk: Closed its business in Russia.
- Atlassian: Ceased operations in Russia.
- ASUS: Halted product shipments to Russia.
- Activision Blizzard: Suspended new sales of and in its games in Russia.
- Nintendo: Suspended eShop operations in Russia.
- Sony (PlayStation): Suspended software and hardware shipments, and PlayStation Store operations.
- CD Projekt Red: Suspended sales of its games in Russia and Belarus.
- Spotify: Fully exited the Russian market.
- Netflix: Suspended its service in Russia.
- Airbnb: Suspended all operations in Russia and Belarus.
This list is not exhaustive, as many other smaller and specialized IT companies have also withdrawn or significantly scaled back their presence in Russia. The situation remains dynamic, with ongoing re-evaluations and adjustments by companies in response to geopolitical developments and sanctions.
