The Google subsidiary in Russia plans to file for bankruptcy after the seizure of its bank account by the authorities, as it is unable to pay its staff and suppliers.
However, services that are free of charge, such as Internet search and YouTube, will continue to be available, a Google spokesman said on Wednesday.
The Alphabet Inc. subsidiary has been under pressure in Russia for months after failing to remove content that Moscow considers illegal, as well as restricting some Russian media outlets on YouTube.
However, the Kremlin has so far not blocked access to the company’s services.
“The seizure of the Google Russia bank account by the Russian authorities has rendered the operation of our office in Russia unsustainable, including the payment of payments to employees based in Russia, as well as the payment of payments to suppliers and its partners, as well as the fulfillment of other financial obligations, “said a Google spokesman.
“Google Russia has released an announcement of its intention to declare bankruptcy.”
A TV channel owned by a Russian businessman against whom sanctions have been imposed reported in April that bailiffs had confiscated 14.31 million euros from Google after failing to regain access to its YouTube account.
However, this is the first time that the American technology giant announces that its bank account has been confiscated in its entirety.
Google did not immediately confirm whether the seizure of this amount led to its intention to file for bankruptcy or whether other accounts were seized.
The bailiff database in Russia has registered two seizures by mid-March, without specifying the amounts seized, as well as the imposition of fines.
The same service has confirmed that it has seized Google assets.
Google has confirmed that it has relocated several of its employees outside Russia since Moscow invaded Ukraine on February 24. However, some of them chose to stay and no longer work for the American company.
SOURCE: AMPE
Source: Capital
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