Kremlin claims $235m from Google

The Telegraph: The Kremlin is seeking $235m (£180m) from Google’s bankrupt Russian entity after repeatedly fining YouTube for hosting videos banned by the regime.

US court records showed that Russia’s tax authority, on behalf of Vladimir Putin’s government, had demanded 21.5bn roubles, equivalent to $235m.

Google continues to operate YouTube and other services in Russia, despite its local entity declaring bankruptcy, saying it is one of the few remaining ways people in the country can access information freely.

Keeping services online in Russia has led to the company being hit with millions in fines for refusing to delete what the Kremlin calls “false content”.

The Russian government is unlikely to be able to seize the funds, with Google’s bankrupt Russian entity having assets of just 3.5bn roubles, around $38.2m.

Google Russia declared bankruptcy in 2022. It has subsequently said that Russian authorities seized around $100m in assets from the company, some of which has since gone to pro-Putin broadcasters.

The fines have emerged in US court documents as part of an international legal battle between Google and three Russian broadcasters including the state-owned RT, previously known as Russia Today.

RT and the pro-Kremlin channels Tsargrad TV and NFPT are pursuing legal action against Google in jurisdictions including Turkey, South Africa and Spain. They are seeking to force the company to pay Kremlin-ordered fines that cannot be recovered from Google’s bankrupt Russian entity.

Google is suing the broadcasters in the UK and US, seeking a ruling that action in the other countries is void.

The US documents, filed by the three Russian broadcasters, say that the majority of the $235m sought by the Kremlin “is mostly comprised of administrative fines imposed on Google in or around 2022 for failure to remove from YouTube videos containing information prohibited for circulation in the Russian Federation and other legal violations”.

If Russia’s claims are successful, it might mean Google Russia’s remaining funds being distributed to the Kremlin instead of creditors and employees. A bankruptcy hearing is scheduled for October.

Google removed RT and other broadcasters from YouTube shortly after Russia’s invasion of Ukraine. It has been ordered to pay the channels compensation.

Russia has frequently issued fines against Western technology companies for refusing to take down material the government disagrees with.

Google has said the fines are an attempt to limit access to the company’s services in Russia.

The broadcasters have enjoyed some success in targeting funds from Google outside of Russia. NFPT won a preliminary court order in South Africa allowing it to take Google’s assets in the country, while separate hearings are scheduled in Algeria and Turkey.

The broadcasters have also attempted to launch legal action in Spain, Hungary and Kyrgyzstan.