Microsoft’s Russian subsidiary to file for bankruptcy

One of Microsoft’s subsidiaries in Russia is planning to file for bankruptcy, according to a note posted on the official Fedresurs registry.

The note detailed that Microsoft Rus LLC was intending to declare bankruptcy, according to Reuters.

According to the filing, the unit’s revenue dropped from RUB 6.9 billion ($89 million) in 2021 to RUB 161.6 million ($2 million) in 2024. Despite that, the company still managed to turn a profit of RUB 174.1 million ($2.2 million).

Reportedly, Microsoft has three other Russian units - Microsoft Development Centre Rus, Microsoft Mobile Rus, and Microsoft Payments Rus, although it’s not certain whether they will remain operational.

Microsoft had already removed the mobile apps of the Russian state-owned media outlet RT from the Windows App Store and banned advertisements on Russian state-sponsored media.

Although the company began scaling down its operations in the country after Russia’s full-scale invasion of Ukraine, Microsoft remained present there until the end of 2024. In 2025, 13 of its branches in major cities such as Moscow, St Petersburg, Yekaterinburg, and Vladivostok were officially closed.

Earlier this week, Putin said that foreign service providers like Microsoft and Zoom should be "throttled", allowing Russia to develop its own software solutions.

Google's Russian subsidiary was also recognised as bankrupt by a Moscow court in 2023 - a year after authorities seized its bank account, making it impossible to pay employees and vendors.