Google Russia to file for bankruptcy; can't pay 100 employees

Google said its Russian subsidiary is planning to file for bankruptcy because it can't pay staff and suppliers.

Russian state media reported Wednesday that the U.S. tech company's Russian subsidiary, Google LLC, submitted a notice of its intention to declare bankruptcy to a national registry, Fedresurs.

The company said in a press statement that it filed for bankruptcy because 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.”

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Reuters reports that a Russian TV channel claimed authorities seized 1 billion roubles (about $15 million) from Google in April after it didn’t reinstate access to the channel’s YouTube account. Russia’s communication regulator also threatened to slap Google with a more modest 8 million rouble fine after it removed “illegal” videos from YouTube. It’s unclear how much Russia has seized from Google in total.

Google, which had previously suspended its business operations in Russia, said it would continue to provide its free services there, including Search, YouTube, Gmail, Maps, its Android operating system and its Play app store.