Russian cybersecurity company and antivirus software provider Kaspersky Lab will start shutting down operations in the United States on July 20.
In a statement to BleepingComputer, the company also confirmed that it will lay off its U.S.-based employees. Independent cybersecurity journalist Kim Zetter first reported that this will affect "less than 50 employees in the U.S."
This comes after the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) sanctioned twelve Kaspersky Lab executives on June 21 for operating in Russia's technology sector, freezing their U.S. assets and preventing access to them until the sanctions are lifted.
The Department of Commerce also designated AO Kaspersky Lab, OOO Kaspersky Group (Russia), and Kaspersky Labs Limited (United Kingdom) to its Entity List, preventing any U.S. business from conducting business with them.
"Today's Final Determination and Entity Listing are the result of a lengthy and thorough investigation, which found that the company's continued operations in the United States presented a national security risk—due to the Russian Government's offensive cyber capabilities and capacity to influence or direct Kaspersky's operations—that could not be addressed through mitigation measures short of a total prohibition," the Bureau of Industry & Security said.
"Any individual or business that continues to use Kaspersky products and services assumes all the cybersecurity and associated risks of doing so."
One day earlier, the Department of Commerce's Bureau of Industry and Security (BIS) also banned the company from selling its software and delivering Kaspersky antivirus updates, effective September 29, over potential cybersecurity risks to national security.
Kaspersky told BleepingComputer on Monday that it would completely shut down its business in the United States because the Biden administration's decisions would make the operations "no longer viable."
"Starting from July 20, 2024 Kaspersky will gradually wind down its U.S. operations and eliminate U.S.-based positions,"Kaspersky told BleepingComputer.
"The decision and process follows the Final Determination by the U.S. Department of Commerce, prohibiting the sales and distribution of Kaspersky products in the U.S.
"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."
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