Google Faces Rising Penalties and Bankruptcy in Russia
ICARO Media Group
### Google Faces Escalating Financial Penalties in Russia Over Unpaid Fines
Google is facing a relentless increase in financial penalties in Russia after a court continuously doubled the initial fine of 100,000 rubles every week since 2020. The original fine emerged after two Kremlin-affiliated media organizations successfully sued Google, contending that restrictions were placed on their YouTube channels.
The situation has further deteriorated with Google banning additional Russian outlets that supported Russia’s actions in the Ukraine conflict, leading to additional fines, according to The Independent. Google's response has been to significantly scale back its operations within Russia. Over the past few years, the tech giant has blocked the creation of new accounts by Russian users and limited Russian nationals' abilities to monetize content on YouTube.
"We have ongoing legal matters relating to Russia," stated Google in light of the fines. “For example, civil judgments that include compounding penalties have been imposed upon us in connection with disputes regarding the termination of accounts, including those of sanctioned parties.”
Compounding the issue, Google’s Russian subsidiary filed for bankruptcy in 2022, a move precipitated by Russia’s seizure of its bank account. "The Russian authorities' seizure of Google Russia's bank account has made it untenable for our Russia office to function, including employing and paying Russia-based employees, paying suppliers and vendors, and meeting other financial obligations," a Google spokesperson explained, as reported by Reuters.
As Google continues to grapple with these financial and legal challenges, the tech giant’s presence in Russia becomes increasingly limited, reflecting the broader tensions and regulatory hurdles faced by foreign companies operating in the region.