Microsoft’s Russian Subsidiary Initiates Bankruptcy Files

(MENAFN) One of Microsoft's divisions operating in Russia has revealed intentions to initiate bankruptcy proceedings, as indicated in an official statement posted on the Fedresurs registry on Friday.

The American technology conglomerate made the decision to withdraw from the Russian market soon after the intensification of the war in Ukraine.

In March 2022, the firm halted the distribution of its merchandise and services across Russia. Additionally, it suspended various components of its local operations to adhere to international sanctions imposed by Western nations on Moscow in response to the conflict.

Following Microsoft's withdrawal, numerous prominent Russian corporations—including Severstal, Uralkali, VTB, MegaFon, and Gazprombank—have launched legal actions against its local branch, Microsoft Rus.

These lawsuits collectively seek compensation for unfulfilled contractual duties, amounting to 341 million rubles (approximately USD3.6 million), according to a business outlet.

Soon after ceasing activities in the country, Microsoft also discontinued the renewal of Microsoft 365 subscriptions—such as "Outlook," "Teams," "Office," "OneDrive," and "SharePoint"—for business customers.

The company also severed access to cloud-based platforms like "Visio Online," "Project Online," and "Power BI" for several Russian entities and enacted additional limitations.

The business outlet’s analysis indicates that the Russian arm of Microsoft generated revenue of 161.6 million rubles (about USD2 million) in the previous year, with net earnings of 174.1 million rubles (USD2.13 million).

By contrast, in 2021—the last full year prior to the company’s departure—Microsoft Rus reported earnings of 6.9 billion rubles (USD84.5 million) and a net profit of 638.1 million rubles (USD7.8 million), highlighting the significant downturn in business performance since exiting the market.

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