Russian cybersecurity outfit Group-IB will split its domestic and international business into two separate companies in a bid to maintain a presence in both the Russian and overseas markets, the company said on Wednesday.
The company’s global headquarters in Singapore will handle international clients, while a “completely autonomous” Russian spin-off will work with businesses in Russia and a handful of other former Soviet states, Group-IB said in a statement.
The move mirrors steps taken by dozens of international companies to exit or sell their Russian operations since the West hit Russia with unprecedented economic sanctions in response to Moscow sending tens of thousands of troops into Ukraine in February in what it calls a “special military operation.”
“The Russia and Commonwealth of Independent States (CIS) business from now on will evolve independently,” Group-IB said in a statement.
The first stage of separation has been completed, and shareholders’ assets will be divided between the two companies within six months, Group-IB said.
“We believe that this step will give us more market freedom and will accelerate business development in all regions of Group-IB’s presence,” said Group-IB Global’s general director Dmitry Volkov.
Group-IB was once a feted symbol of Russia’s home-grown tech industry, with President Vladimir Putin in 2019 awarding founder Ilya Sachkov a business prize for young entrepreneurs.
Its international expansion and work with foreign law enforcement agencies appeared to concern Russian authorities however and in September 2021 Sachkov was arrested and charged with treason for divulging state secrets to a foreign power.
Sachkov remains in detention in Moscow and has denied the charges. Reuters