Google's business in Russia seems to be on the brink so that the US company is close to bankruptcy . This situation of great difficulty is created by the country's continuing sanctions on all foreign companies operating in its territory. Just as Europe is continuing to face a large number of penalties, so Russia has prepared itself to act with countries considered hostile to it. Big tech companies were not spared as they first tried to keep their businesses and then had to surrender to ever-increasing difficulties.
What's behind Google's failure in Russia
The information on the Google affair appears rather confused and incomplete, as often happens during this war. The Reuters news agency had reported a news released by a state television. According to Russian statements, the authorities had stolen about 1 billion rubles from the Russian subsidiary, equivalent to about 15 million dollars . Furthermore, Google had already undergone another decision in the past months due to some activities on YouTube declared illegal by the Russian state.
The last action was, in fact, the blocking of the current account, through the seizure of fiscal assets. Consequently, the company's difficulty in maintaining its functions active also due to the fact that without the liquidity of the account it is unable to honor the payslips of its employees or to pay suppliers. An extremely complex situation that forced Google to withdraw from Russia.
What will happen to users of Google's services in Russia
Following his statements , however, Google wanted to reassure Russian citizens on the continuation of part of its services . In fact, free services like Search, YouTube, Gmail, Maps, Android and Play Store will continue to work as usual. However, if the broken bank were confirmed, Google would be the first of the big techs to leave Russia without its representation. The other companies had also stopped their services but none, so far, had yet closed their representative offices. With this action, about a hundred employees would end up unemployed due to the conflict in Ukraine.
We will certainly monitor the evolution of the situation even in the event of possible changes in the services offered. It could happen, in fact, that after the shutdown of Google Ad advertising services, the company may decide to suspend other channels that have been kept open up to now . Any scenario following the conflict in Ukraine is to be expected as the nature of these events is extremely unpredictable.
The article New sanctions in Russia and Google declares itself ready for bankruptcy was written on: Tech CuE | Close-up Engineering .