US sanctions curb Microsoft sales to hundreds of Russian companies

The moves by the Russian distributors show how tougher restrictions that came into force on November 28 are starting to bite

Microsoft
Anastasia Lyrchikova | Reuters Moscow
Last Updated : Jan 22 2018 | 9:28 PM IST
Two of Microsoft’s official distributors in Russia have imposed restrictions on sales of Microsoft software to more than 200 Russian companies following new US sanctions, according to notifications circulated by the distributors.

While much of the focus around US sanctions has been on ways they are being skirted, the moves by the Russian distributors show how tougher restrictions that came into force on November 28 are starting to bite. The new measures 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 sanctions 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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