Microsoft’s Russian branch plans to file for bankruptcy, having already drastically scaled back its operations.
According to Redresur.ru, a Russian government registry, Microsoft Rus LLC has confirmed that it intends to file for bankruptcy. The Russian news agency TASS writes that the company had closed all its offices in 13 Russian cities around New Year’s Eve.
The closure is not entirely unexpected. Microsoft continued to operate in Russia after the Russian invasion of Ukraine, but made it clear in June 2022 that it would wind down its operations. According to TASS, the company generated revenues of 174.1 million rubles in Russia last year, equivalent to approximately 1.9 million euros.
The Russian Press Agency notes that Microsoft has three other entities in Russia: Microsoft Development Centre Rus, Microsoft Mobile Rus and Microsoft Payments Rus.
Microsoft Rus LLC, which is now filing for bankruptcy, is the primary legal division; meanwhile, Microsoft Mobile Rus, for example, ceased its activities in 2016. Whether the other entities will also be closed down is not entirely clear, although it seems likely.