Google's Russian business plans to file for bankruptcy after authorities seized its bank account, making it hard to pay personnel and merchants, a Google representative said Wednesday. However, free services like search and YouTube will continue to operate.
The Alphabet Inc subsidiary has been under fire in Russia for months for failing to delete content Moscow considers illegal and for restricting access to some Russian media on YouTube, but the Kremlin has thus far refrained from barring access to the company's services.
A Google spokeswoman explained, "The Russian authorities' seizure of Google Russia's bank account has rendered it impossible for our Russia office to function, including employing and paying Russia-based employees, paying suppliers and vendors, and meeting other financial commitments."
In April, a TV channel owned by a sanctioned Russian businessman reported that bailiffs had seized 1 billion roubles ($15 million) from Google for failing to restore access to its YouTube account.
However, this is the first time the U.S. tech giant has confirmed that its entire bank account has been frozen.
Google did not immediately disclose whether the seizure of these cash was the cause of its intention to file for bankruptcy.
Since mid-March, the database of Russia's Federal Bailiffs Service lists two seizures without monetary details, as well as various fines and enforcement fees.
The service confirmed that it had confiscated assets and property belonging to Google.
Since Russia's deployment of tens of thousands of troops into Ukraine on February 24, Google has relocated a large number of its employees from Russia. However, some elected to remain and are no longer with the organization.
A notice posted on Russia's official registry Fedresurs on Wednesday stated that the Google subsidiary intended to declare bankruptcy and had, since March 22, anticipated an "inability to fulfill its financial obligations," including severance pay, compensation for current and former employees, and timely mandatory payments.
Google stated that its free services, including Gmail, Maps, Android, and Play, would continue to be accessible to Russian users despite the suspension of ad sales and most other commercial operations.
Despite repeated threats and fines, Russia stated on Tuesday that it has no plans to ban YouTube, noting that such a step would undoubtedly harm Russian users and should therefore be avoided.
According to TASS, the CEO of Rostelecom, Mikhail Oseevskiy, disclosed Wednesday that Google was running normally in the country, including all of its servers.
