Google Russia has no money to pay salaries to its 100 employees, heads for bankruptcy

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Google Russia has no money to pay salaries to its 100 employees, heads for bankruptcy
Representative imageBCCL
  • Google Russia plans to file for bankruptcy after local authorities seized its bank accounts, assets and property.
  • Google had been facing pressure from the Russian government after it failed to delete content, which Russia deemed illegal.
  • The country’s government had also imposed a fine of $113 million, or 7.2 billion Ruble, on the tech giant
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The Russian subsidiary of Google — which too is run by Alphabet Inc — plans to file for bankruptcy after local authorities seized its bank accounts, assets and property. The company’s spokesperson confirmed the development, highlighting that Google Russia does not have enough assets to pay suppliers, vendors and employers.

“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 Russia is said to have employed over 100 employees.

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With this, Google Russia has also moved most of its employees out of the country. Despite the insolvency petition, services like Search, Maps, YouTube and Gmail would continue to be operational in the Asian country. There would be no changes to Google’s Android operating system or Play store app either, the company has confirmed.

The development comes as Russia is fighting a war with Ukraine over geopolitical issues.

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Google had been facing a lot of pressure from the Russian government after it failed to delete content, which Russia deemed illegal. The company was also facing criticism for restricting access to some Russian media on YouTube.

The country’s government had also imposed a fine of $113 million, or 7.2 billion ruble, on Google in December 2021 for not resolving the raised concerns. However, the Russian government has confirmed that it has no intention to not ban Google despite the issue.

Interestingly, Google Russia has earned a revenue of RUB (rubles) 134.3 billions or $210 million 2022 , Interfax news agency's Spark database of Russian companies showed. It accounts for 1% of Alphabet Inc’s revenue.

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