September 22, 2023

Athens News

News in English from Greece

Russian "daughter" Google went bankrupt

Google Russia has filed for bankruptcy, and soon Google may finally leave the country.

The arrest of the Google Russia bank account led to bankruptcy, it made it impossible for the Russian office to function, retain employees and pay them. An application for recognition of the bankruptcy of the Russian “daughter” of the American corporation, Google LLC, has been filed with the Moscow Arbitration Court, said today Interfax with reference to the data file of arbitration cases.

As early as May 18, a notice was posted on Fedresurs by Google LLC about its intention to apply to the arbitration court with an application for recognition of its own bankruptcy. It said that the Russian company from March 22, 2022 “provides for its own bankruptcy and the impossibility of fulfilling financial obligations.”

Google then explained that the arrest of the bank account made it impossible for the Russian office to function: paying suppliers and contractors, maintaining the state of employees and paying them in the Russian Federation, fulfilling other financial obligations. However, Google reported that the company will continue to provide the opportunity to use free services for users from Russia: Gmail, Search, Maps, YouTube, Google Play.

Until March 19, the company had to pay a turnover fine on the claims of Roskomnadzor, in the amount of more than 7.2 billion rubles (more than $127 million). In May, bailiffs opened a case against Google for its enforcement. It is worth adding that the company has been fined more than once for not removing content called “forbidden” in the Russian Federation from its sites, including YouTube. In relation to the Russian “daughter” of Google, several lawsuits were also initiated in the arbitration court, the plaintiffs in them are the Russian media.

Google LLC was registered in 2005. The revenue of the Russian company for 2021 amounted to 134.3 billion rubles, while it received a net loss of 26 billion rubles (since 2009, this is the company’s first loss).

Google Corporation has taken most of its employees from Russia to Dubai, it has a large office there. Some of them, however, decided to quit their jobs and stay in Russia.

Source link