JAKARTA - One of Microsoft Corp's subsidiaries in Russia, Microsoft Rus LLC, plans to file for bankruptcy, according to an official note published on Friday 30 May in Fedresurs' registries, the company's legal information listing agency in Russia.
Microsoft has not yet responded to requests for comment from various media on the news.
The move comes amid increasing pressure from the Russian government on foreign technology companies. Earlier this week, President Vladimir Putin stated that foreign service providers such as Microsoft and Zoom needed to be "delayed" its operations to provide space for the development of domestic software solutions.
Since Russia's invasion of Ukraine in February 2022, Microsoft has taken steps to limit its activities in the country. In June 2022, the US tech giant said it would significantly reduce its operations in Russia due to changes in economic conditions and its impact on the company's business.
Previously, Microsoft had also removed an application belonging to Russian state media, RT, from the Windows App Store, and banned advertising from the country's sponsored media.
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Although Microsoft Rus LLC will file for bankruptcy, it remains unclear the fate of the other three Microsoft-owned units in Russia, namely Microsoft Development Center Rus, Microsoft Mobile Rus, and Microsoft Payments Rus, as reported by the TASS news agency.
A similar move was taken by a Google subsidiary (owning Alphabet Inc) in Russia in 2022, after local authorities seized their bank accounts, so they could no longer pay local employees and vendors.
This situation confirms the increasingly difficult for Western technology companies to maintain operations in Russia amid geopolitical turmoil and increasingly stringent regulatory pressure.
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