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Security vendor splits – not quits – to address Russia's invasion of Ukraine

(2022/07/07)


Singapore-based security vendor and services provider Group-IB has commenced a "regional diversification" program that will see it not just continue to operate in Russia (unlike a great many other companies), but do so with a dedicated entity.

As explained in a [1]post by CEO Dimitry Volkov, the company's global HQ in Singapore will manage its activities and assets in Southeast Asia, Europe, and the Middle East.

A new and independently managed entity will offer the company's services and wares in Russia.

[2]

"The two businesses' financial flows are totally separated from each other including their costs and revenues," Volkov wrote, adding "no revenues generated in any of Group-IB Global Private Ltd.'s subsidiaries are used to fund any activities in the Russia and CIS region."

[3]

[4]

Volkov pledged that within six months, Group-IB will change its ownership structure so that its assets, and those used by the made-for-Russia entity, are "owned by different stakeholders and UBOs."

The CEO said this arrangement will allow Group-IB to go about its business independent of "external circumstances."

[5]

Which is almost certainly code for "Russia's illegal invasion of Ukraine that has so outraged the world that plenty of tech vendors quit Russia in protest."

[6]Microsoft, AWS, awarded Ukraine peace prize for cloudy services

[7]Kremlin names the internet giants it will kidnap the Russian staff of if they don't play ball in future

[8]Microsoft pulls Windows 10/11 installation websites in Russia

Group-IB was founded in Moscow and announced it would move from Russia to Singapore in 2018, when then-CEO Ilya Sachkov [9]described the island nation as "a global financial center, most favorable for running a global business."

"Singapore government aims to create a safe and secure ecosystem free of bureaucratic barriers for everyone – people, public and private companies – which is exactly what is needed for managing Group-IB's global cyber threat-hunting infrastructure."

Unlike Russia, which in 2018 was already on the nose – and is now apparently so much that even a Russian-founded company can't bear to have its global operations associated with the nation.

Group-IB's actions are unusual, as most vendors have made a clean break from Russia – ceasing operations and preventing sale of their products and services.

[10]

Volkov thinks his plan has its own merits.

"The diversification of business will let Group-IB to be more flexible and independent in order to keep developing its global threat hunting infrastructure, and to study local threats with the goal of providing best-in-class defense against cyber threats for its customers and partners in every region of operations," he wrote. ®

Get our [11]Tech Resources



[1] https://www.group-ib.com/media/diversification/

[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2YscDILCv@1iuhmGQqRfzUgAAAIU&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0

[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YscDILCv@1iuhmGQqRfzUgAAAIU&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YscDILCv@1iuhmGQqRfzUgAAAIU&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YscDILCv@1iuhmGQqRfzUgAAAIU&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[6] https://www.theregister.com/2022/07/07/clouds_win_ukraine_peace_prize/

[7] https://www.theregister.com/2021/11/25/tech_offices_russia/

[8] https://www.theregister.com/2022/06/21/windows_10_11_russia/

[9] https://www.group-ib.com/media/gib-singapore/

[10] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YscDILCv@1iuhmGQqRfzUgAAAIU&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[11] https://whitepapers.theregister.com/



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