Sony has finally closed the book on its Russian business, legally liquidating its local subsidiary Sony Mobile Communications Rus on August 11, official documents of the Unified State Register of Legal Entities show. The action closes the chapter on an 18-year experience in the Russian market for the Japanese giant.
The company first established itself in Russia in 2006, building what would be a big operation in near two decades. But the path to shut-down was not easy – Sony attempted to wind down its Russian business in 2023, but that did not work. The company finally submitted liquidation documents to the Federal Tax Service in October 2024, completing a process that had been going on for years.
Comprehensive Pullout of Sony from Russia
Sony’s pullout from Russia was one of the larger corporate reactions to Russia’s February 2022 invasion of Ukraine. As one of the first companies to pull out, the firm showed its support for Ukraine and adherence to international sanctions.
The withdrawal was thorough and rapid. Within weeks of the invasion, Sony had stopped all PlayStation console shipments to Russia and cut back on PlayStation Store operations altogether. The company also took a humanitarian step, donating $2 million toward aiding Ukrainians who suffered from the war through collaborations with the United Nations and Save the Children.
Sony’s entertainment units also took their cue with their own withdrawals. Sony Pictures Entertainment ceased to release movies in Russian cinemas, and Sony Music suspended operations in September 2022. The music unit took it a step further by withdrawing foreign music catalogs from the local streaming platforms and dividing its Russian operations into a distinct label.
Gradual Wind-Down Process
The recent years of Sony’s operations in Russia included a gradual phase-out. The subsidiary was mainly engaged in selling off current inventory as well as providing device servicing to current customers. Through 2024, Sony had started closing its branded retail stores systematically throughout Russia, having completed the work by summer as a result of an outright unavailability of new product supply.
This business decline is evidently manifested in the financial performance of the company in its latest years. Sony Mobile Communications Rus had a staggering net loss of 1.43 billion rubles (or about $15.9 million) in 2022, and a loss of 530.2 million rubles ($5.9 million) in 2023. The company could only earn a very minimal profit of 111.7 million rubles ($1.2 million) in 2024, but that income was derived from pure warranty services and administrative activities and not pure product sales.
Total revenue at the Russian subsidiary fell by some 76% during this time, a testament to how much the company had shrunk before shutting its doors for good.
Sony’s Exit and the Broader Trend of Western Firms Leaving Russia
Sony’s exit is but one component of a much broader trend of Western firms exiting Russia after the invasion of Ukraine. In a report released in March 2025, Russian consulting firm Kept estimated that nearly 62% of Western firms that hold significant Russian assets exited Russia since the conflict started. Companies sold most of their assets to local Russian buyers or transferred control to local management groups.
This mass exodus has entirely transformed the Russian business landscape. It erased most of the international brands and services Russian consumers were used to in the last decades. For Sony, a consumer electronics, gaming console, and entertainment content company, the retreat is the loss of a market that had been increasing steadily since the mid-2000s.
The official shutdown of Sony Mobile Communications Rus is more than a business strategy it is a reflection of how trends in geopolitics can drastically reconfigure international business and compel multinational businesses to make decisions between market potential and ethical standards. For Sony, it was an easy call in the first place, although the actual process took over two years to complete in full.
