Radio Liberty's Russian affiliate files bankruptcy

The Moscow Arbitration Court has declared Radio Free Europe/Radio Liberty media company bankrupt.

The details of the decision were published in the court filing cabinet on March 13, Kommersant informs.

The tax inspectorate sued the media outlets on March 4.

“To declare the debtor bankrupt and open bankruptcy proceedings," reads the court ruling.

Yuliya Agha-Kuliyeva, who had previously been a provisional trustee, has been approved as bankruptcy manager, according to the reporters attending the courtroom.

The court introduced initial bankruptcy proceedings (supervision) in August at the request of Moscow Inspectorate No.7 (the initiator of the lawsuit) due to a tax debt of RUB 7m. The case materials show that later the court included in the register a claim of the Federal Tax Service for another RUB 720m, as well as a claim of the department for securing the activities of magistrates for RUB 69m.

The court introduced the initial bankruptcy procedure (supervision) in August at the request of the Moscow Inspectorate of the Federal Tax Service No. 7 (the lawsuit initiator) due to a tax debt of 7 million roubles ($92,580). It follows from the materials of the case that later the court included in the register the demand of the Federal Tax Service for another 720 million roubles ($9.5 million), as well as the demand of the department for ensuring the activities of justices of the peace for 69 million roubles ($912,600).

A representative of the defendant claimed at the hearing that it was impossible to pay taxes in full due to the blocking of the broadcasting organisation's accounts. The court ruled in this regard after numerous enforcement proceedings (at least 1,000 protocols) were initiated in connection with violations related to the rules of operation of the foreign mass media (lack of marking).

Radio Liberty announced the termination of its activities in Russia in March 2022. The organisation motivated its decision by the bankruptcy case of the legal entity as well as "pressure on journalists".