Cybersecurity company Kaspersky ceases US operations

The Russian cybersecurity company and AV software vendor Kaspersky Lab will begin shutting down operations in the United States this month. According to reports, the company has already acknowledged that it will lay off its employees in the US, meaning 50 confirmed employees will be jobless once the shutdown is complete.

This event comes after the United States Treasury Department’s Office of Foreign Assets Control sanctioned twelve Kaspersky Lab officials for operating in Russia’s technology industry, freezing their assets in the United States and restricting access until the sanctions were released.

The confirmed sanctioned operations by the Department of Commerce are the AO Kaspersky Lab, OOO Kaspersky Group (Russia), and Kaspersky Labs Limited (United Kingdom). This sanction has prohibited these sectors of Kaspersky Labs from doing business with any US-based company.

 

The Kaspersky Lab shutdown is primarily due to Russia’s potential direct influence.

 

The Final Determination and Entity Listing issued earlier this month resulted from an extensive investigation, which determined that the Kaspersky Lab’s continued operations in the United States posed a national security risk.

The verdict came after it was determined that outside entities could influence the company due to the Russian Government’s offensive cyber capabilities and ability to dictate Kaspersky’s decisions.

The government also warned that any individual or corporation that continues to use the company’s products and services is fully responsible for the cybersecurity risks involved.

Furthermore, the Department of Commerce’s Bureau of Industry and Security (BIS) prohibited the corporation from selling its software or providing antivirus updates beginning September 29 due to potential cybersecurity dangers to national security.

Kaspersky also revealed that it would shut down its company in the United States due to the Biden administration’s choices, rendering the operations “unviable.” Starting July 20, 2024, the company will gradually stop its US operations and eliminate US-based roles.

The decision and process follow the US Department of Commerce’s Final Determination, which prohibits selling and distributing Kaspersky goods in the United States.

The company carefully analysed and evaluated the impact of US legislative requirements before making this process, as commercial opportunities in the country will no longer be sustainable.