Google’s Russian unit to file for insolvency, no funds to pay salaries to employees
Google files for bankruptcy
Google’s Russian subsidiary is planning to file for bankruptcy after the local authorities seized its bank accounts, assets and property, according to Reuters news agency.
The company’s spokesperson confirmed that the global software giant has no funds to pay suppliers, vendors and employees.
"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,” the spokesperson, Julie Tarallo McAlister, said in a press statement.
Google’s Russia unit has about 100 employees.
However, Google said it will continue to offer its free services, such as Search, Maps, YouTube and Gmail in Russia for the time being.
There would be no changes to Google’s Android operating system or Play store app either, the company has confirmed.
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The company has been under immense pressure after it restricted access to Russian media on YouTube and suspended its commercial activities in the country after Russian President Vladimir Putin invaded Ukraine.
Watch |Google's Russia unit to file for bankruptcy as bank account of Google's Russian subsidiary seized
According to Reuters, a TV channel owned by a sanctioned Russian businessman said in April that the sleuths had seized 1 billion roubles ($15 million) from Google over its failure to restore access to its YouTube account.
However, it is unclear whether the seizure of this fund has led Google to file for insolvency.
Also read |How does Google make money?
In December, Google was fined 7.2 billion rouble for what Moscow said was a repeated failure to delete content Russia deems illegal.
That fine increased by 506 million roubles due to an enforcement fee.
Alphabet, the parent company of Google,last month said that Russia accounted for 1 per cent of its revenue last year, or about $2.6 billion.
(With inputs from agencies)
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