Kaspersky, a Moscow-based cybersecurity firm, has announced it will be winding down its business operations in the United States starting on July 20 following the decision made by the U.S. Commerce Department that has effectively banned the company from selling its products and services in the country.
In a statement, Kaspersky expressed that this was a “sad and difficult decision” for the company, as the business opportunities in the U.S. market are no longer viable.
The gradual wind-down of its U.S. operations will include the elimination of the firm’s U.S.-based positions.
With a global presence operating in dozens of countries, including the UK, Kaspersky employs thousands of staff to serve hundreds of millions of business customers and consumers worldwide.
The company’s long-standing ties to Russia have been a source of concern for U.S. authorities.
Last month, the Bureau of Industry and Security (BIS) Office of Information and Communications Technology and Services (OICTS) issued a Final Determination that banned Kaspersky’s U.S. subsidiary from providing any products or services in the country.
The determination claimed that the firm “poses an undue or unacceptable risk to national security.”
The concerns raised by the U.S. government centered around the potential that Kaspersky could be compelled by the Kremlin to provide access to the information of U.S. customers or even install malware on their devices.
The Commerce Department also added Kaspersky to its Entity List, effectively prohibiting any U.S. organizations from doing business with the company.
In response, Kaspersky stated that it intends to pursue “all legally available options” to challenge the ban, while denying any involvement in activities that could threaten U.S. national security.
The company sees itself as a victim in the escalating geopolitical conflict between Russia and the West.
This is not the first time Kaspersky has faced scrutiny from U.S. authorities. In 2017, the U.S. Department of Homeland Security (DHS) issued a directive banning the use of Kaspersky products in government agencies.
More recently, in 2022, the U.S. Federal Communications Commission (FCC) added Kaspersky to its “List of Communications Equipment and Services that Pose a Threat to National Security.”
Despite the company’s efforts to maintain its presence in the U.S. market, the latest decision by the Commerce Department has effectively sealed the fate of Kaspersky’s operations in the country.
As Kaspersky navigates this challenging situation, the broader implications of the U.S. government’s actions against the firm will be closely watched by the cybersecurity industry and the international community.
The decision reflects the ongoing tensions between the United States and Russia, with the security of critical infrastructure and sensitive information at the heart of the matter.
