World Economy

Microsoft Could Lose Billions

Microsoft Could Lose BillionsMicrosoft Could Lose Billions

Microsoft could lose billions of dollars if it chooses to curb its sales in Russia due to US sanctions, communications minister Nikolai Nikoforov was quoted by Russian news agencies as saying on Tuesday. Reuters reported on Monday that two of Microsoft’s official distributors in Russia imposed curbs on sales of Microsoft software to more than 200 Russian companies following new US sanctions, which came into force on Nov. 28. The US sharpened its economic restrictions in relation to Russia in November, adding yet another layer to the sanctions regime first imposed by several western nations on Russia for its role in the Ukraine conflict. The new restrictions cut the duration of loans that can be offered to Russian financial firms subject to sanctions to 14 days from 30 days and to 60 days from 90 days for Russian energy companies on a US list. Previously, the restrictions had mainly affected western banks lending to Russian firms; but with such short financing periods, swathes of companies supplying goods and services to Russian clients fear they could fall foul of the rules too.

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