Microsoft exits Russian market as local subsidiary prepares for bankruptcy

American tech giant Microsoft is making a final exit from Russia.

Source: The Moscow Times, an independent Amsterdam-based news outlet

Details: Its subsidiary, Microsoft Rus, is preparing to file for bankruptcy in the Moscow Arbitration Court. The main creditor in the case is Gazprombank, one of the largest banks in Russia.

The reason for the court filing is Gazprombank’s lawsuit seeking to recover RUB 90.9 million (about US$1.14 million) under a technical support contract valid from September 2021 to September 2022. 

The bank accuses Microsoft Rus of failing to fulfil its obligations, despite having received full payment.

In April, the court partially satisfied the claim and ordered the company to pay around US$949,000, including unjust enrichment and interest. Additional interest will continue to accrue until the debt is fully paid.

Although Microsoft began reducing its presence in Russia after the full-scale invasion of Ukraine in spring 2022, the legal entity remained in the country until the end of 2024. Only in early 2025 were its 13 branches in major cities such as Moscow, St Petersburg, Yekaterinburg and Vladivostok officially closed.

The official reporting shows that the company’s operating activity plummeted: revenue dropped from RUB 6.9 billion (around US$86 million) in 2021 to RUB 161.6 million (US$2 million) in 2024. Nevertheless, the company still shows a net profit of RUB 174.1 million (about US$2.2 million).

Background:

• Russia’s Ministry of Digital Development wants to gradually restrict the operation of foreign cloud services that have domestic alternatives. 
• Microsoft has begun disconnecting Russian companies from its cloud platforms, specifically subscriptions to Power BI, Visio and Project.

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