July 16, 2024 Russian cybersecurity firm Kaspersky Lab announced it will cease its U.S. operations starting July 20, following sanctions from the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC). These sanctions targeted twelve Kaspersky executives, freezing their U.S. assets and blocking access due to their operations in Russia’s technology sector. The Department of Commerce also added Kaspersky to its Entity List, prohibiting any U.S. business from engaging with the company.

In addition to the OFAC sanctions, the Department of Commerce’s Bureau of Industry and Security (BIS) effectively banned the sale and distribution of Kaspersky products in the U.S., effective September 29. This decision was based on national security concerns related to the Russian government’s potential influence over Kaspersky’s operations. The Bureau stated that the company’s presence in the U.S. posed risks that could not be mitigated without a complete prohibition.

As a result, Kaspersky will lay off about 50 U.S.-based employees as it winds down its operations. The company stated that the U.S. government’s actions rendered its business in the country nonviable, leading to the difficult decision to shut down.

Kaspersky emphasized that the shutdown process will begin on July 20. The company reiterated that it had carefully considered the impact of U.S. legal requirements before deciding to exit the market.