Russian cybersecurity firm Kaspersky Labs announced plans to gradually wind down its U.S. operations starting July 20. This decision comes nearly a month after the Biden administration unveiled plans to ban the sale of Kaspersky products in the United States, citing national security concerns. The move marks the end of nearly two decades of Kaspersky's presence in the U.S. market.
In a statement released Monday, Kaspersky Labs confirmed the elimination of all U.S.-based positions and restricted U.S. customers from purchasing its products. The company's website displayed a notice stating, "purchase unavailable for U.S. customers." This announcement followed U.S. Commerce Secretary Gina Raimondo's declaration in June, which highlighted the security risks posed by Russia's influence on Kaspersky.
"The company has carefully examined and evaluated the impact of the U.S. legal requirements and made this sad and difficult decision as business opportunities in the country are no longer viable," Kaspersky Labs stated.
The U.S. government's recent restrictions, which will take effect on September 29, prohibit the download of software updates, resales, and licensing of Kaspersky products. New business transactions with Kaspersky will be blocked 30 days after the initial announcement on June 20. The Department of Commerce had previously announced the ban, emphasizing concerns that the Russian government could leverage Kaspersky's antivirus software to conduct surveillance on Americans.
Kaspersky has vehemently denied these allegations. Despite this, the sanctions imposed in June targeted the company's senior leadership, including the chief business development officer, chief operating officer, legal officer, and corporate communications chief, citing cybersecurity risks.
The decision to shut down U.S. operations follows years of escalating tension between Kaspersky and U.S. authorities. In 2017, the U.S. government banned its agencies from using Kaspersky software, citing concerns over the company's ties to the Russian government. The recent measures by the Biden administration represent a significant escalation, extending the ban to all sales and provision of Kaspersky software in the U.S.
Founded in Moscow in 1997, Kaspersky Labs has grown into one of the world's leading antivirus software companies, alongside American rivals such as McAfee and Symantec. The company's researchers are renowned for their expertise in analyzing hacking operations attributed to various governments, including Russia, the United States, and Israel, as well as cybercriminal activities affecting everyday users.
Despite the challenges in the U.S. market, Kaspersky Labs remains committed to its global operations. "We will continue investing in strategic markets and remain committed to serving our customers and partners and ensuring their protection," the company said in its statement.
The impact of Kaspersky's exit from the U.S. market on its global operations remains to be seen. The company boasts over 400 million users and 240,000 corporate clients worldwide. However, the exact number of U.S. customers affected by this decision has not been disclosed.
The unprecedented nature of the U.S. government's actions against Kaspersky highlights the increasing importance of cybersecurity in national security policy. The legal authorities used by the Commerce Department are relatively new, derived from executive orders aimed at protecting Americans' personal data from foreign adversaries. These include a 2021 executive order by President Joe Biden and a related order by former President Donald Trump in 2019.
