Moscow court declares Microsoft’s Russian subsidiary bankrupt

A Moscow arbitration court declared Microsoft’s Russian subsidiary bankrupt on April 14 and opened liquidation proceedings, according to court documents.

The court had initiated the initial bankruptcy monitoring procedure in September, following a petition filed by Microsoft Rus itself, the Russian state news agency RIA Novosti reported. The company’s outstanding obligations exceeded 1.5 billion rubles.

Microsoft stopped selling products and services in Russia in 2022 after the start of the full-scale invasion of Ukraine. Microsoft Rus continued to provide technical support, but by 2024 the company had only one remaining client, which ended its relationship with the Russian subsidiary in 2025.

After the invasion and the subsequent contraction of its business, Microsoft Rus faced dozens of lawsuits totaling millions of rubles from Russian companies that had purchased Windows and Office licenses. Among the plaintiffs were the Russian state airline Aeroflot, the Russian state bank VTB, the Russian mobile operator MegaFon, the Russian supermarket chain Lenta, the Russian oil company Surgutneftegas, and Gazprombank.

Microsoft’s structure in Russia includes three other legal entities: Microsoft Development Center Rus, Microsoft Mobile Rus, and Microsoft Payments Rus.

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