US sanctions affect Microsoft’s Russian business

Microsoft has run afoul of tough new US sanctions against Russia, which demand Russian companies pay their invoices within very right deadlines (as short as 14 days) or even in advance.

These financing-related restrictions have caused two of Microsoft’s official distributors in Russia to impose restrictions on sales of Microsoft software to more than 200 Russian companies.

The distributors, Merlion and RRC cite the new August 2nd package of U.S. sanctions, as the cause for the restrictions, and would not comment further.

Microsoft, for its part, said:

“Microsoft has a strong commitment to complying with legal requirements and has robust processes around the world to help ensure that our partners are in compliance as well.”

Reuters recently reported that some Russian government entities have been able to order Microsoft software despite restrictions being in place. Violating the restrictions can result in a civil penalty of $250,000 or double the amount of the offending transaction if it is greater. If convicted of willful violation, offenders face a fine up to $1 million, or 20 years in jail, or both.


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