Google Russia filed for bankruptcy in late 2023.
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The Kremlin has actively sought to tighten the grip on information in Russia over the years.
The domains of Western social media and internet platforms such as Youtube, Facebook, Instagram and outlets such as the BBC and Deutsche Welle are blocked, and following the Russian invasion of Ukraine in February 2022, mutliple tech-companies have pulled out of Russia.
One of the biggest to leave Russia is Google, which stopped selling paid apps and subscriptions in May 2022.
Google’s Russian unit sought bankruptcy protection in June 2022, reporting debts of over 19 billion rubles against assets of 3.5 billion. It was formally declared bankrupt in November 2023.
And now, a Moscow court has delivered a major ruling in the bankruptcy case of Google’s Russian subsidiary, escalating a long-running financial dispute within the tech giant’s international structure, The Moscow Times repoorts.
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$2.1 Billion
The decision centers on large-scale transfers made in the years leading up to the company’s exit from Russia.
According to the outlet, the Moscow Arbitration Court on February 16 invalidated a series of payments made by the bankruptcy trustee of OOO Google to Google Ireland Limited.
The court ordered the Irish entity to return more than 160 billion rubles, including 101 billion rubles classified as unjust enrichment and 58.6 billion rubles in interest.
The amount is equivalent to US$2.1 Billion
RBC reported in March 2025, that the contested transfers were carried out between April 2018 and March 2022 under a reseller agreement.
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Of the more than 372 billion rubles reviewed, part was recognized as legitimate payment for services rendered. Funds recovered will be directed toward settling claims from creditors, the trustee’s representative told the court.
Cross-border disputes
Lawyers for Google Ireland sought dismissal, pointing to California law governing the contract and arguing that the statute of limitations had expired.
They maintained that profit margins were consistent with market standards and rejected claims of a prepayment scheme, noting a 60-day grace period.
They also highlighted the forgiveness of a 9 billion ruble debt in 2022.
Ongoing crackdown on free internet
Last week, Russia effectively blocked Meta-owned WhatsApp from Russian users.
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A few days before that, the most popular messaging app in Russia, Telegram, saw its traffic throttled, later confirmed to be the work of the Russian federal executive body responsible for monitoring, controlling, and censoring electronic media, Roskomnadzor.
Earlier this week, news broke of a Kremlin plot to fully block Telegram beginning April 1. The information has not been confirmed.
Sources: RBC, Moscow Times, Ukrainske Pravda