Google lost over $100 million to Russia, revealed US filings. It appears Google’s Russian subsidiary had to declare bankruptcy owing to the seizure of its funds in the country.
Google files lawsuit in the US after losing $100 million in Russia
Google recently filed a lawsuit in the US claiming Russia seized more than $100m. Google has also filed a similar lawsuit in the English courts.
Russian authorities also seized Google’s assets after the company’s Russian subsidiary declared bankruptcy. Specifically speaking, the tech giant has claimed it lost more than £76m after having to pay fines in Russia.
Google crossed Russia and its oligarchs after it banned the YouTube channels of RT, Tsargrad, and NFPT. The search giant also deleted their Google accounts.
As a countermeasure, a Russian court ruled that Google must pay damages to three Russian TV channels. Needless to say, these broadcasters are closely linked to the Russian administration and are owned by Russian oligarchs.
As a result, Google’s Russian arm declared itself bankrupt back in 2022. Google had indicated that the Russian administration had seized its funds. However, back then, the American business hadn’t declared any specific amount.
Is Russia consolidating funds by grabbing money?
Last week, Google filed lawsuits in the American and English courts. The filings claim Kremlin’s bailiffs seized tens of millions of dollars. Russia then handed out large sums to the aforementioned Russian TV channels.
“The bailiffs seized more than $100m of Google Russia’s assets, even though the amount purportedly due under the judgment at the time was less than $12.5m (one billion roubles).
“Russian courts levied unprecedented fines and arbitrary legal penalties against Google in an attempt to limit access to information on our services and as a punishment for our compliance with international sanctions against Russian individuals and organizations.”
It appears Russia could be trying to seize foreign currency and raise capital to fund its ongoing war in Ukraine. This is because after Russia seized funds and released the same, Tsargrad reportedly confirmed it would support Russia with the money, “Tsargrad received one billion roubles from the seizure, which it said it would use to support Russia’s war in Ukraine,” Google has claimed.
Google is now trying to block Russian broadcasters from going after its assets in foreign jurisdictions. Specifically speaking, Google is concerned Russia could try and seize its funds in South Africa, Turkey, and Serbia in a very similar manner. The search giant is already facing a potential ban on its products in Russia.