
The American technology giant Microsoft’s Russian subsidiary, “Microsoft Rus,” is reportedly preparing to file for bankruptcy, having formally announced its intention to do so with the Moscow Arbitration Court via the “Fedresurs” portal. This move signals the culmination of prolonged legal battles that began after Microsoft’s withdrawal from the Russian market in March 2022, a decision made in response to international sanctions.
In the first five months of 2025 alone, “Microsoft Rus” faced four lawsuits from Russian entities, totaling approximately 110 million rubles. This is a significant increase compared to 2024 (26.6 million rubles) and 2023 (170 million rubles). Among the claimants are prominent Russian corporations and financial institutions such as VTB, MegaFon, Gazprombank, Lenta, Severstal, and Uralkali. These companies are seeking refunds for undelivered services, primarily citing the abrupt termination of corporate Microsoft 365 subscriptions, which encompassed office applications, cloud services, and enterprise email solutions. Early court rulings have already favored the claimants, with “Microsoft Rus” ordered in February to pay 16 million rubles to the retail chain Lenta. The remaining cases are still pending, and the outlook for Microsoft appears unfavorable.
Microsoft has systematically ceased all operations in Russia, closing its branches in thirteen cities, including major centers like Moscow, Saint Petersburg, Yekaterinburg, and Novosibirsk, between December 2024 and January 2025. This cessation also included the discontinuation of support for its cloud services and Skype messenger, leaving Russian organizations without essential technical assistance or security updates.
The Microsoft case has become a symbol of the broader exodus of Western technology firms from Russia. Analysts have observed a mass migration of Russian companies away from Google and Microsoft’s corporate email services, with Gmail usage declining by 26% and Outlook by 40% in the past year. This shift presents considerable challenges for Russian businesses, compelling them to find alternative solutions to the tools they previously relied upon.
The impending bankruptcy of “Microsoft Rus” could establish a precedent for other Western IT companies that have announced their departure but have retained legal entities with outstanding obligations in Russia. Microsoft’s Russian presence still includes three other entities: “Microsoft Development Center Rus,” “Microsoft Mobile Rus,” and “Microsoft Payments Rus.” It remains to be seen whether these entities will follow suit.
For Russian users, the bankruptcy signifies the definitive end of all support for Microsoft products. Companies that continue to operate licensed Microsoft software will be compelled to either transition to domestic alternatives or seek other solutions. While the Russian government actively promotes import substitution in the IT sector, this transition to indigenous platforms will necessitate significant time and resources.