Radio Free Europe Closes In Russia After Bankruptcy Filing

(March 7, 2022, 7:00 PM EST) -- Radio Free Europe announced it has shuttered its Russian bureau after tax authorities opened involuntary bankruptcy proceedings against its local entity over millions of dollars in unpaid fines in what the media group claimed was an effort to shut down its coverage of the war in Ukraine.

In a statement issued Sunday, Andrey Shary, chief of Radio Free Europe/Radio Liberty LLC's Russian Service, said there was "no doubt" of the outcome of the proceedings it said were launched Friday in the Moscow Arbitration Court by the Russian Federal Tax Service.

"The liquidation of the LLC right now, and not earlier and not later, is a political decision of the authorities, made due to Russia's aggression against Ukraine," he said.

Shary said the organization had racked up between $13 million and $15 million in fines for violations of a Russian law requiring media organizations classified as "foreign agents" to include disclaimers before all articles and broadcast pieces.

"But we are no one's agent, and we have considered and continue to consider the requirements to 'be marked' as censorship, an attempt to interfere in editorial policy," he said.

In May 2021, RFE/RL filed a complaint against Russia in the European Court of Human Rights, claiming violations of the European Convention on Human Rights. It said the government had frozen its accounts and threatened insolvency proceedings and a two-year prison term for Shary for violations of the "foreign agent" law.

In Monday's announcement, Shary also linked the filing to a law enacted on Saturday that allows prison sentences of up to 15 years for distribution of "false news" about the Russian army and said the organization would have to continue reporting on Russia from abroad.

"No one is ready to risk the safety of employees working in Russia, and we are also thinking about how to protect our own," he said.

Representatives of the Russian government did not immediately respond to requests for comment late Monday.

RFE/RL is a private nonprofit funded by U.S. federal government grants. It reports on 23 countries and operates 21 local news bureaus.

Under Russian bankruptcy procedures after an initial hearing, the court will appoint a trustee to either manage or liquidate the debtor.

--Editing by Jay Jackson Jr.

For a reprint of this article, please contact reprints@law360.com.

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!