A Russian subsidiary of Microsoft Corp (MSFT) is preparing to file for bankruptcy, according to a notice posted Friday on the official Fedresurs registry. Microsoft has not yet responded to a request for comment.
The move comes amid growing pressure on foreign tech firms in Russia. Earlier this week, President Vladimir Putin called for restrictions on services like Microsoft and Zoom, urging a shift toward domestic software alternatives.
Following Russia’s invasion of Ukraine in February 2022, Microsoft initially continued offering essential services in the country. However, by June 2022, the company announced it would be significantly scaling back its operations, citing the shifting economic landscape and the conflict’s impact on its business.
In response to the invasion, Microsoft had also removed the mobile apps of Russian state-run media outlet RT from the Windows App Store and suspended advertising for Russian state-sponsored media.
A notice published Friday on Russia’s Fedresurs registry revealed that Microsoft Rus LLC, one of the company’s local entities, intends to file for bankruptcy.
According to Russian state news agency TASS, Microsoft has three additional subsidiaries in Russia—Microsoft Development Centre Rus, Microsoft Mobile Rus, and Microsoft Payments Rus—though the status of those entities remains unclear.
The situation mirrors that of Google’s Russian subsidiary, which filed for bankruptcy in 2022 after Russian authorities froze its bank accounts, making it impossible to pay local employees, vendors, and suppliers.
Microsoft had continued to offer essential services in Russia following the country’s invasion of Ukraine in February 2022. However, by June of that year, the company announced it would be significantly reducing its operations in Russia, citing economic uncertainty and the conflict’s impact on its business.
In the early days of the invasion, Microsoft removed the mobile apps of Russian state-owned media outlet RT from its Windows App Store and banned advertisements from state-sponsored Russian media.
The bankruptcy filing applies to Microsoft Rus LLC, according to the Fedresurs note. Russian news agency TASS reported that Microsoft also has three other entities in the country — Microsoft Development Centre Rus, Microsoft Mobile Rus, and Microsoft Payments Rus — but their status remains unclear.
The development echoes a similar case involving Google’s Russian subsidiary, which filed for bankruptcy in 2022 after its bank accounts were seized by Russian authorities, rendering it unable to pay local employees, vendors, and suppliers.
As of the latest Nasdaq closing, Microsoft shares ended at $460.36, up 0.37%, with a slight dip to $460.18 in after-hours trading.
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