Google’s Russian subsidiary to file for bankruptcy after bank account seizure

Google’s Russian subsidiary plans to file for bankruptcy after authorities confiscated its bank account, making it impossible to continue operations, a company spokesman said on Wednesday.

The company has been under pressure in the eastern European country for months for not deleting content that Moscow deems illegal and for restricting access to some Russian media on YouTube.

“The Russian authorities’ seizure of Google’s bank account has made the operation of our office in Russia unsustainable, including employing and paying employees, paying suppliers and meeting other financial obligations,” said a Google spokesperson. “Google Russia has published a notice of its intention to declare bankruptcy,” he added.

A sanctioned TV channel owned by a Russian businessman said in April that law enforcement officials seized 1 billion rubles ($15 million) from Google for its failure to restore access to its YouTube account, but this is the first time the US tech giant says its bank account has been blocked.

Google did not immediately confirm whether it was the seizure of those funds that led to its intention to file for bankruptcy or whether other seizures took place.

The database of Russia’s Federal Service of Bailiffs has listed two seizures since mid-March, without specifying the amounts, as well as other fines and enforcement fees.

The service confirmed that it had seized Google’s assets and properties.

A note published in Russia’s official registry, Fedresurs, on Wednesday said the Google subsidiary was “sending a notice of intent to declare itself insolvent (bankrupt)”.

“As of March 22, 2022, it provides for its own bankruptcy and inability to fulfill its pecuniary obligations, claims for compensation and (or) the remuneration of workers and (or) the obligation to make mandatory payments within the prescribed period,” it said. the note.

Google, which halted the vast majority of its business operations in Russia after Moscow sent tens of thousands of troops to Ukraine on Feb. 24, said its free services, including Search, YouTube, Gmail, Maps, Android and Play, would remain. available for Russian users.

Russia said a day earlier that it does not plan to block YouTube in the country despite repeated threats and fines, acknowledging that such a move would likely harm Russian users and therefore should be avoided.