Google Said to Transfer Engineering Operations Out of Russia

Google Inc. is transferring its engineering operations out of Russia, according to a person familiar with the matter, after the government adopted new rules requiring more data to be stored in the country.

Despite the shutdown, the Mountain View, California-based company plans to increase its business investment in Russia next year, said the person, who asked not to be identified because the matter is private. Google has made similar internal changes in other countries, including Sweden, Finland and Norway, the person said.

The pullback follows the souring of relations between Russia and the U.S. and Europe. Russia, which is pushing for more self-sufficiency in industries ranging from software to food production, has rolled out new rules requiring global technology companies to store more data locally.

“We are deeply committed to our Russian users and customers,” Google said in a statement. “We have a dedicated team in Russia working to support them.”

Google remains a leading technology company in the Russia. Google’s share of the search market there rose to 31 percent in the third quarter from 27 percent in the first, while rival Yandex NV dropped to 60 percent from 62 percent, according to LiveInternet.ru data. Google’s smartphone software, Android, has 85 percent of Russia’s market, according to researcher IDC.

The Information, a technology news website, earlier reported on the move by Google.

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