Microsoft's Russian subsidiary has announced plans to file for bankruptcy, according to an official registry notice published on Friday, marking the latest Western technology company to exit the Russian market following the country's invasion of Ukraine.

Microsoft Rus LLC posted a notice on the official Russian registry Fedresurs stating its intention to declare bankruptcy. The move comes just days after Russian president Vladimir Putin publicly criticised foreign digital service providers, saying companies like Microsoft and Zoom should be "throttled" in favour of domestically developed alternatives.

"Foreign service providers like Microsoft and Zoom that act against Russian interests should be throttled," Putin said on Monday, emphasising the importance for Russia to develop domestic software solutions.

The American technology giant has not issued an official statement in response to inquiries about the bankruptcy filing. However, the decision appears to represent the final step in Microsoft's gradual withdrawal from Russia, which began after Moscow's invasion of Ukraine in February 2022.

Microsoft initially continued providing essential services such as security updates and cloud support following the invasion. However, by June 2022, the company announced it was significantly scaling down its operations due to changes in the economic outlook and the impact on its business in the country.

The company also removed Russian state-owned media outlet RT's mobile applications from the Windows App Store and banned advertisements on Russian state-sponsored media in the days following the invasion.

According to Russian news agency TASS, Microsoft operates three other affiliated entities in the country: Microsoft Development Centre Rus, Microsoft Mobile Rus, and Microsoft Payments Rus. The status of these units remains unclear, with uncertainty over whether they will also initiate bankruptcy proceedings or attempt to continue operating under restricted conditions.

Microsoft joins other Western technology companies that have exited Russia since the war began. In 2022, Google's Russian subsidiary filed for bankruptcy after authorities froze its bank accounts, making it impossible for the company to pay local employees or fulfil obligations to suppliers.

The exodus of Western technology firms aligns with Russia's push for "technological sovereignty", a policy that has gained momentum since the Ukraine conflict began. While some foreign software continues to be used in Russia through grey market channels or rebranded alternatives, official policy increasingly favours domestic innovation.

The bankruptcy filing represents the formal dissolution of Microsoft's presence as a business entity in Russia, following the pattern established by other foreign companies exiting the market.

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