Google Russia files for bankruptcy, after Russian authorities seize bank account

After authorities seized its bank account, Google’s Russian unit plans to declare for bankruptcy, making it hard to pay employees and merchants.

Google’s representative said on Wednesday that the company’s Russian subsidiary planned to file for bankruptcy. After authorities seized its bank account, making it hard to pay employees and vendors.

Although free services such as search and YouTube would continue to operate. For months, the Alphabet Inc unit has been under fire in Russia for failing to remove unlawful content and restricting access to some Russian media on YouTube.

The Kremlin has refrained from barring access to the company’s services.

“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.

1 billion roubles seized

Bailiffs seized 1 billion roubles ($15 million) from Google over its refusal to restore access to its YouTube account, according to a TV programme controlled by a sanctioned Russian businessman in April. But this is the first time the US internet giant has declared its whole bank account has been taken.

The firm did not immediately clarify whether the seizure of those funds prompted its bankruptcy filing, or whether more seizures had taken place.

Google Free Services to Stay

Google stated its free services. Such as Gmail, Maps, Android, and Play, will remain available for Russian consumers. Despite the suspension of ad sales and most other commercial operations in Russia.

Despite threats and fines. Russia announced on Tuesday that it would not restrict Google’s YouTube. Recognizing that such a step would undoubtedly harm Russian users and should be avoided.

Russia fined Google 7.2 billion rubles in December. For what it said was a continuous failure to erase content it deemed illegal. The first revenue-based penalty of its sort in Russia.

According to bailiffs’ records, the fine was increased by 506 million rubles due to an enforcement cost.

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