Days after Putin threatened to “throttle” Teams, Microsoft’s subsidiary in Russia will file for bankruptcy

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I recently came across a report by Reuters indicating that a subsidiary of Microsoft is planning to file for bankruptcy. According to this report, a filing was made with the official Fedresurs registry on Friday, May 30, 2025, outlining these bankruptcy plans.

In particular, Microsoft Rus LLC might seek bankruptcy protection. At the moment, it’s unclear what will happen to the other three Microsoft entities based in Russia – Microsoft Development Center Rus, Microsoft Mobile Rus, and Microsoft Payments Rus. Their current situations are undetermined as of now.

Microsoft is set to follow other tech giants and submit a chapter of insolvency in Russia. In 2022, Google’s Russian subsidiary petitioned for bankruptcy following their claim that Russian authorities seized their bank accounts, hindering payments within the country.

Russia and Microsoft

In response to Russia’s invasion of Ukraine in 2022, Microsoft chose to halt software sales within the country. However, they have maintained some operations in Russia, albeit on a reduced scale.

Additionally, Microsoft took down the mobile applications of RT, a Russian government-backed media organization, from its app store. Moreover, this technology company prohibited advertising on all Russian state-funded media platforms.

In early March, Russian President Vladimir Putin suggested that Western company goods should be limited or restricted within Russia. These comments were made during a conversation about American firms that have left or scaled back their activities in the nation.

In the meeting with entrepreneurs, Putin stated, “We must slow down their activities,” implying that the US companies are attempting to strangle us economically. In response, he suggested taking reciprocal actions.

Putin’s remarks emerged not long after President Trump expressed his opinion that Putin has become completely ‘unhinged’.

Trump stated that Putin unnecessarily causes the deaths of numerous individuals, and it’s not only military personnel. Missiles and drones are being launched into cities within Ukraine without any discernible purpose.

It remains unclear at this point what led to Microsoft’s Russian division filing for bankruptcy, as they have yet to make any official comments on the matter.

Russian statements and leadership indicate a desire for homegrown alternatives to goods produced by Western firms. This shift is evident in various sectors, with Vkusno i Tochka stepping into the gap previously occupied by McDonald’s as an example.

Kaspersky Lab has the potential to bridge some of the voids created by tech giants like Google, Microsoft, and others based in the West. Based in Moscow, Russia, Kaspersky Lab is a significant stakeholder in the company MyOffice.

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2025-06-02 15:39