Microsoft’s Russian Subsidiary Reveals Plans to Declare Bankruptcy
(MENAFN) A subsidiary of Microsoft operating in Russia has revealed plans to declare bankruptcy, as indicated by a notification posted on the official Fedresurs registry this past Friday. The American technology powerhouse chose to withdraw from the Russian market following the intensification of the Ukraine conflict.
In March 2022, Microsoft ceased the sale of its products and services within Russia and suspended other business activities to adhere to Western sanctions imposed on Moscow in response to the war in Ukraine.
Since the company’s exit, several major Russian corporations—including Severstal, Uralkali, VTB, MegaFon, and Gazprombank—have initiated legal action against Microsoft’s local branch, Microsoft Rus. These lawsuits, which accuse the subsidiary of breaching contractual agreements post-exit, collectively amount to 341 million rubles, roughly $3.6 million, as reported by a Russian business outlet.
Following its operational shutdown in Russia, Microsoft halted renewals for Microsoft 365 subscriptions—covering key services like Outlook, Teams, Office, OneDrive, and SharePoint—for Russian corporate users. The firm also cut off access to cloud services such as Visio Online, Project Online, and Power BI for several Russian organizations, among other imposed limitations.
Financial records tracked by the outlet reveal that Microsoft Rus generated revenue of 161.6 million rubles (approximately $2 million) last year, with a net profit of 174.1 million rubles ($2.13 million). In comparison, the subsidiary posted significantly higher figures in 2021, its final complete year operating in Russia, reporting revenue of 6.9 billion rubles ($84.5 million) and profits of 638.1 million rubles ($7.8 million).
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