Microsoft Russia has announced that it plans to submit a bankruptcy request. It joins a list of other Western technology companies that come out of the Russian market.
Geopolitical tensions again affect the technology industry, where Microsoft joins a list of other Western companies such as Google that closes Russian subsidiaries.
Microsoft Rus LLC, a subsidiary of Microsoft Corp, has announced that it will announce bankruptcy. The advertisement was issued by a notice published on the official Russian registry Fedresurs on Friday, May 30.
This decision appears to have been taken by the continuous decline of Western technology companies from the Russian market, given the escalating political tensions and economic isolation resulting from the war in Ukraine.
Russia’s unity in Microsoft on the edge of the abyss
While Microsoft has not issued an official statement in response to inquiries, the notification indicates that the company is already in Russia. Over the past two years, the company has greatly reduced its presence in the country.
The notice came a few days after the criticism of Russian President Vladimir Putin, and suggested that foreign digital service providers such as Microsoft and Zoom be “suffocated by the developed alternatives locally.
Microsoft was one of many Western technology giants who responded to Russia’s invasion of Ukraine in February 2022 by reducing services and operations in the country. Initially, the company continued to provide basic services such as safety and cloud support updates, but by June 2022, the company announced the reducing the size of its Russian operations due to the deterioration of the economic environment and geopolitical instability.
After this announcement, the company removed the RT (formerly Russia Today) application from the Windows App Store and the banned ads from the media of the Russian state.
Fedresers record registration states that Microsoft Rus LLC It is now going on with legal bankruptcy entry steps, which are likely to be present as an official commercial entity in Russia. This is the style followed by other foreign companies coming out of Russia.
Tass notic to Russia that Microsoft runs three other subsidiaries in the country, namely: Microsoft Development Center Rus, Microsoft Mobile Rus, and Microsoft Payments Rus.
At this time, the condition of these units is still unclear. Whether they will also start bankruptcy procedures or try to continue working under restricted conditions, not yet seen.
Other companies leave Russia
Earlier this week, President Vladimir Putin emphasized the need for Russia’s weaving from Western digital tools, specifically naming Microsoft and Zoom.
While Russia’s “technological sovereignty” policy is not new, pressure on the use of regulations to suppress foreign companies to support the alternatives that have been developed by Russian since the war began in Ukraine.
In 2022, the Russian sub -company went to bankruptcy after the authorities freezed its bank accounts, making it impossible for the company to pay local employees or fulfill the obligations to suppliers.
Some foreign programs in Russia continue to be used so far and are often circulated through gray market channels or their commercial signs, but the official policy prefers local innovation increasingly, even at the expense of performance, reliability or global integration.
Microsoft’s exit may accelerate the aspirations of local innovation in Russia as sectors that relied on the company’s productivity, cloud services and infrastructure of cybersecurity now empty -handed.
Industry observers have noted that the repetition and integration of the Microsoft ecosystem will be a major challenge for Russian developers, at least in the short term.
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