May 18 (Reuters)-Google’s Russian subsidiary will file for bankruptcy after authorities seize bank accounts, making it impossible to continue operations, a Google spokeswoman said. Said on Wednesday.
Alphabet Inc Google (GOOGL.O) The Kremlin has been under pressure in Russia for months as Moscow failed to remove content it considers illegal and restricted access to some Russian media on YouTube. However, he stopped blocking access to the platform.
“The seizure of Google Russia’s bank account by Russian authorities has prevented the Russian office from functioning, including hiring and paying Russian-based employees, paying suppliers and vendors, and fulfilling other financial obligations.” A Google spokesperson said.
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“Google Russia has announced its intention to file for bankruptcy.”
A television channel owned by a licensed Russian businessman said in April that he had seized 1 billion rubles ($ 15 million) from Google because he couldn’t regain access to his YouTube account. This is the first time a US tech giant has told a bank that the entire account has been confiscated. read more
Google didn’t immediately confirm whether it was the foreclosure of those funds that led to the intention to file for bankruptcy, or whether another foreclosure had occurred.
The database of Russian Federal Enforcement Services has listed two seizures since mid-March without specifying any amount, other fines or execution fees.
The service has confirmed that it has seized Google’s assets and property.
According to a memo posted Wednesday in the official Russian registry Fedresurs, Google’s subsidiary “submitted a notice of intent to declare bankruptcy.”
“Since March 22, 2022, foreseeing bankruptcy and failure to meet financial obligations, demanding severance pay, and / or remuneration for staff working or previously working under an employment contract. , And / or obligatory payments within a given period of time. “
Free service to stay
Google has suspended most of its commercial activities in Russia following Moscow’s dispatch of tens of thousands of troops to Ukraine on February 24, Search, YouTube, Gmail, Maps, Android, Play. Announced free services such as. Russian users will continue to be available.
Russia said on Tuesday that it has no plans to block Google’s YouTube despite repeated threats and fines, and such a move could afflict Russian users and should therefore be avoided. Was admitted. read more
Rostelecom (RTKM.MM) According to a TASS press, CEO Mikhail Oseevskiy said Google is operating normally in the country, including all servers.
In December, Russia handed Google a claim of 7.2 billion rubles for Moscow’s statement that it had repeatedly failed to remove content that Russia deems illegal. This is the first revenue-based penalty in this type of incident in Russia.
According to the executioner’s data, the fine increased by 506 million rubles due to the execution fee.
The Russian subsidiary’s 2021 revenue was 134.3 billion rubles, as shown by Interfax News Agency’s Spark database of Russian companies.
($ 1 = 63.9570 rubles)
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Report by Reuters; edited by Elaine Hardcastle, Guy Faulconbridge, David Clarke
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