Google bankrupt in Russia

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Google’s Russian division has announced that it is about to file for bankruptcy after the country’s authorities seized its bank account. The company has acknowledged that it is “unsustainable” to continue its business in Russiaand that it cannot afford to pay its employees, suppliers and other financial obligations.

Google’s Russian subsidiary acknowledges that it can neither continue its business nor afford to pay its employees’ salaries

As well as many other companies in the technology sector, Google suspended much of its activity commercial activity in Russia when the country launched its offensive against Ukraine last February. Google is also preventing Kremlin-linked media from earning advertising revenue.

Nevertheless, and despite the google’s Russian subsidiary is in a delicate financial situationthe company has assured that it will continue to provide its free services to users in that country. This involves access to its search engine, YouTube, Gmail email and Google Maps.

Already in May last year Russia fined Google $82,000 for not removing from its search engine content allegedly illegal in the country. Then, last December, the Kremlim again sanctioned the company for the same reason, this time with a fine of $98 million. That amount represents, approximately, 5.7% of Google’s total turnover in Russia during 2021.

In recent months, since the beginning of the war, the body in charge of regulating telecommunications has been pressuring YouTube to reverse the sanctions imposed against Russian media.

According to a Russian TV channel, Putin’s regime allegedly appropriated about $15 million from Google after the company refused to restore the YouTube account of one of the TV stations close to the Kremlin.

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