In a shocking revelation, court documents have unveiled that Russian authorities seized more than $100m (£76m) from Google’s bank accounts in 2022, pushing its Russian entity into bankruptcy. The seized funds were reportedly handed over to Russian TV channels, including the state-owned RT and Tsargrad, a propaganda service that openly pledged to use the money to support the Kremlin’s war efforts in Ukraine.
The seizure of funds came after a Moscow court ruled that Google should pay damages to Tsargrad TV, an Orthodox propaganda channel owned by the sanctioned oligarch Konstantin Malofeev. Google has since filed lawsuits against RT, Tsargrad TV, and a third broadcaster, NFPT, in US and English courts, seeking to block these broadcasters from pursuing its assets in foreign jurisdictions such as South Africa, Turkey, and Serbia.
Russian courts have determined that Google owes Tsargrad an astonishing 32.8bn roubles (£273m) in compensation for removing the channel from YouTube and deleting its Google accounts. However, due to daily penalties that double every 24 hours, this sum could potentially surpass Google’s entire market value.
Google has stated that Russian courts have “levied unprecedented fines and arbitrary legal penalties against Google in an attempt to limit access to information on our services and as a punishment for our compliance with international sanctions against Russian individuals and organisations.”
The Moscow-based law firm Art de Lex, representing the bankruptcy manager, has prioritised paying Russian broadcasters when disbursing the seized funds, ahead of employees and other creditors. This move has raised concerns about the fairness and legality of the process.
As the situation unfolds, it remains to be seen how Google will navigate this complex legal battle and protect its assets from being further exploited to fund propaganda efforts in support of Russia’s war in Ukraine.
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