Microsoft Subsidiary in Russia Reportedly Bankrupt | OBROLANBISNIS.com — One of Microsoft Corp’s subsidiaries in Russia, Microsoft Rus LLC, plans to file for bankruptcy. This information was announced in an official note published in the Russian state registry, Fedresurs, Friday (5/31/2025).
This move marks the continuation of the US technology company’s efforts to reduce its footprint in Russia since Moscow’s invasion of Ukraine in February 2022.
As reported by Reuters, the bankruptcy announcement came just days after Russian President Vladimir Putin said that foreign service providers such as Microsoft and Zoom should begin to be “slowed down” in Russia. Putin said this was done to make room for the development of domestic software solutions.
Microsoft actually continues to provide core services in Russia despite increasing geopolitical tensions since the invasion of Ukraine. However, in June 2022, the company announced that it would significantly reduce its operations in the country citing changes in the economic outlook and its impact on their business.
Previously, shortly after the invasion began, Microsoft had also taken a number of tough steps against Russian state-owned media. The company removed the RT (Russia Today) app from the Windows app store and blocked ads on Russian state-sponsored media.
Meanwhile, a Fedresurs filing confirmed that Microsoft Rus LLC — Microsoft’s main entity in Russia — would file for bankruptcy. It is unclear whether Microsoft’s three other Russian units — Microsoft Development Centre Rus, Microsoft Mobile Rus, and Microsoft Payments Rus — would also be affected.
Microsoft’s move follows other major tech companies that have also closed their operations in Russia. In 2022, Alphabet Inc’s Google subsidiary filed for bankruptcy after Russian authorities seized its bank accounts.
The situation left the company unable to pay local employees, suppliers, and vendors, making it impossible to continue operating in Russia.
The restrictions on foreign companies in Russia are part of the Kremlin’s efforts to strengthen the country’s digital independence, especially amid growing international sanctions. ***
