Is Microsoft’s Russian Bankruptcy a Major Setback for Global Tech?
Microsoft’s Russian subsidiary, Microsoft Rus LLC, has filed for bankruptcy following a court ruling in favor of Gazprom Bank, which resulted in a penalty of approximately 1 million euros. This development is a direct consequence of ongoing legal and operational challenges since the imposition of international sanctions after Russia’s invasion of Ukraine.
Microsoft ceased all business operations in Russia in 2022 due to international sanctions, halting software deliveries, cloud services, and support. The shutdown led to widespread contract disruptions, including issues with software licenses and updates.
In January 2025, Gazprom Bank sued Microsoft Rus LLC for “unjust enrichment.” A Russian court partially upheld the claim, ordering Microsoft to pay a significant penalty.
Facing mounting legal and financial pressure, Microsoft Rus LLC declared insolvency and initiated bankruptcy proceedings. Microsoft’s offices in multiple Russian cities were closed earlier in 2025, further signaling the end of its direct presence in the country.
Implications
- The bankruptcy underscores the severe impact of sanctions and legal disputes on Western tech companies operating in Russia.
- Russian customers and businesses face increased uncertainty regarding access to Microsoft products, updates, and support.
- The move highlights the growing legal and financial risks for multinational corporations in sanctioned markets.