Google Intends To File Bankruptcy In Russia After Its Russian Bank Account Is Seized

23/05/2022

Google is among the largest tech companies on Earth.

The company earns billions and billions of dollars every year, coming from the many countries it operates its business on, that generate millions and millions of dollars every single year.

But despite earning that many, the company couldn't operate properly if the institution where it puts its money is seized.

And this is what exactly happened in Russia.

After Russia's invasion to Ukraine, the relations between Russia and the U.S. reached its lowest point since the Cold War. Because the U.S. and its allies have been imposing sanctions to Russia, Russia too is sanctioning the U.S.

Among the sanctions, include Moscow seizing Google's bank account.

Google Balchug Plaza
Google's office in Balchug Plaza, , Balchug St, 7, Moscow, Russia.

And this makes it difficult for Google to operate in the country.

It all started soon after Russian President Vladimir Putin declared war against Ukraine.

With the internet populated with different perspectives, views and opinions, Russian officials started demanding Google to stop showing ads about Russia's invasion of Ukraine, in order to contain information it considers inappropriate.

Google paused its advertising business after Russian officials demanded it, and also halted most of its other commercial operations in Russia.

In spite of repeated threats and billions of rubles worth of fines, Google said that such a move would likely see Russian users to suffer, and should therefore be avoided.

But following that, Russian officials who responded to the West's sanctions to Russia, also want to cripple western companies conducting business on its lands.

And that includes Google.

Google is targeted because it was failing to remove contents Moscow deemed illegal, and also because of its decision in restricting access to some Russian media on YouTube.

And the easiest way to cripple a legitimate business, is by crippling its cash flow.

Google Balchug Plaza
The entrance to Google's office in Moscow, Russia, photo taken in 2018.

"The Russian authorities' seizure of Google Russia's bank account has made it untenable for our Russia office to function, including employing and paying Russia-based employees, paying suppliers and vendors, and meeting other financial obligations," a Google spokesperson said in a statement.

The database of Russia's Federal Bailiffs Service listed two seizures that have happened to Google since mid-March of 2022.

The service also confirmed that it had seized Google assets and property.

Due to its "inability to fulfil its monetary obligations," Google has no choice but to step back from the country.

Following Moscow's decision, Google confirmed that it had moved many of its employees out of Russia, also for safety reasons.

It's worth noting that Google's Russian subsidiary's 2021 revenue was 134.3 billion rubles. Alphabet said in April, that Russia accounted for 1% of its revenue last year, or about $2.6 billion.