Russian security vendor Kaspersky said it is pulling out of the U.S. market nearly a month after the Commerce Department announced a ban on the sale of its software in the country, citing threats to national security.
There was news about the closure reported for the first time journalist Kim Zetter.
The company is expected to wind down its US operations on July 20, 2024, the same day the ban takes effect. Less than 50 employees are also expected to be laid off in the US
“The company has carefully studied and evaluated the impact of the US legal requirements and has made this sad and difficult decision as business opportunities in the country are no longer viable,” the company said in a statement.
At the end of June 2024, the Ministry of Commerce said it was enforcing the ban after what he said was an “extremely thorough investigation”. The company has also been added to the entity list, which prevents US businesses from doing business with it.
It is not currently known what the investigation revealed, but the agency said the company’s continued operations in the US could serve as a conduit for the Kremlin’s offensive cyber capabilities.
“The manipulation of Kaspersky software, including in US critical infrastructure, could pose significant risks of data theft, espionage, and system disruption,” the Bureau of Industry and Security (BIS) said. “It could also jeopardize the country’s economic security and public health, which could lead to injury or death.”
Existing customers in the US were advised to find alternative technology solutions until September 29, when the company is expected to stop providing software updates and antivirus signatures.
Kaspersky has denied the allegations, saying it does not engage in activities that could threaten US national security and that the decision was based on “the current geopolitical climate and theoretical concerns” rather than a comprehensive assessment of its products and services.
