Microsoft Subsidiary in Russia Plans Bankruptcy Amid Regulatory Pressure

Microsoft is preparing to file for bankruptcy for one of its subsidiaries in Russia, Microsoft Rus LLC, following President Vladimir Putin's call to limit foreign service providers in favor of domestic software solutions. Despite continuing to provide essential services after Russia's invasion of Ukraine, Microsoft significantly scaled down its operations in Russia in June 2022 due to changing economic conditions and geopolitical tensions. The company had also removed Russian state media RT's mobile apps from the Windows Store and banned advertising on Russian government-backed media. Microsoft has three other subsidiaries in Russia—Microsoft Development Centre Rus, Microsoft Mobile Rus, and Microsoft Payments Rus—whose status remains unclear. This move mirrors a similar bankruptcy filing by Google's Russian subsidiary in 2022, which struggled after Russian authorities seized its bank accounts. Microsoft's decision reflects the broader challenges faced by foreign tech firms operating in Russia amidst increasing regulatory and political pressures.