Following the recent US ban on the sale of all Kaspersky products, the Moscow based cybersecurity and antivirus provider has announced its US based business will be permanently closed, and workers will be laid off.
Russia’s initial interference and subsequent invasion of Ukraine has damaged an already troubled relationship, and deepened US suspicions around the use of Kaspersky software.
The ban comes into place on July 20 2024, which is when Kaspersky will begin its winding down process (via Zero Day).
Kaspersky to exit US
Back in 2017, Kaspersky faced its first restrictions after the Department of Homeland Security banned Kaspersky software from use in all government departments and agencies, which was then followed up in 2018 with a ban from all US military systems. US officials frequently cite Kaspersky’s Russian roots and worries that the Kremlin could force the company to provide access to Kaspersky operations.
In reaction to the ban, Kaspersky initially said that it would fight the ban in court, however this latest revelation seems to indicate that Kaspersky has accepted its fate. A statement said, “The company has carefully examined and evaluated the impact of the U.S. legal requirements and made this sad and difficult decision as business opportunities in the country are no longer viable.”
Kaspersky has frequently denied that the Russian government holds any sway or influence over the company. Speaking on a phone call to reporters, US Secretary of Commerce Gina Raimondo said, “Given the Russian government’s continued offensive cyber capabilities and capacities to influence Kaspersky’s operations … we have to take the significant measure of a full prohibition if we’re going to protect Americans and their personal data.”
“When Americans have software from companies owned or controlled by countries of concern – such as Russia, such as China – integrated into their systems… those countries can use their authority over those companies to abuse that software to access and potentially exploit sensitive U.S. technology and data,” Raimondo concluded.
Kaspersky confirmed that withdrawing from the US market would affect “less than 50 employees in the U.S.” However, a report by the company last year suggested that the US market comprises “just under 10%” of its total revenue, and that Kaspersky software protects “more than a million endpoints” in the US.
The Commerce Department has placed Kaspersky on its trade-restrictions list, preventing US companies from doing any further business with the Moscow-based company.