. The company would have been expecting those revenues to grow, says Dan Ives, an analyst at Wedbush. “Google went down the same path as Microsoft, where there was a lot of hope that they could expand within Russia over the next decades,” he says.
The freeze on Google’s bank account is a result of the company’s ongoing tug-of-war over what the Russian government considers problematic content on its platforms. The irony is that without a Russian subsidiary, the country’s authorities will find it even harder to force Google to comply with rules around content moderation.
“Russia does not have a Great Firewall. Russia does not have a strong domestic tech sector that can assume the role of these large Western companies,” he says. “And as Google withdraws its employees and physical infrastructure, Russia will find it harder and harder to coerce the company.”
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