Microsoft's Russia unit to file bankruptcy as Putin pushes local tech dominance
Nearly three years after Russia's invasion of Ukraine sent shockwaves through the global tech landscape, Microsoft appears poised to sever another official tie with the country.
A filing published on Russia's Fedresurs registry this Friday revealed that Microsoft Rus LLC, a key subsidiary of the U.S. tech giant, intends to declare bankruptcy.
The move, while not entirely surprising, underscores the deepening rift between Western technology providers and Moscow. After February 2022, Microsoft had signaled a retreat first by halting new sales, then gradually scaling down operations in response to sanctions and the shifting economic outlook.
By June of that year, most of its local business had been wound down, though critical services lingered.
This latest development follows remarks by Russian President Vladimir Putin, who called for the throttling of foreign tech firms such as Microsoft and Zoom, urging state and private institutions to adopt domestic alternatives.
The call reflects a broader strategy of digital sovereignty aimed at reducing Russia's dependency on U.S.-based platforms.
Microsoft has declined to comment on the filing, and questions remain about the fate of its remaining Russian entities: Microsoft Development Centre Rus, Microsoft Mobile Rus, and Microsoft Payments Rus.
The extent of their operational status remains unclear, though the bankruptcy of Microsoft Rus LLC suggests a final unraveling of what was once a significant presence in the region.
What began as a strategic withdrawal may now be morphing into a full-scale corporate exit.
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