Kaspersky will shutter US operations after software is banned by Commerce Department, citing risk

NEW YORK (AP) — Cybersecurity firm Kaspersky says it's shutting down all of its operations in the United States, just weeks after the Commerce Department banned the use of the company's software in the country.

Kaspersky will “gradually wind down” its U.S. operations starting July 20, according to a statement from the Moscow company. Positions based in the U.S. will also be eliminated, the company said, later confirming that fewer than 50 employees would be impacted.

“Kaspersky has been operating in the U.S. for close to 20 years, contributing to the nation’s strategic cybersecurity goals by safeguarding organizations and individuals in the country from ever-evolving cyberthreats," Kaspersky stated. “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.”

Last month, the Commerce Department announced a ban on sales of Kaspersky software in the U.S. The government argued the company's Russian connections pose an “undue or unacceptable risk to U.S. national security or the safety and security.”

Aside from Kaspersky's obligation to abide by Russian law, its software could be exploited to identify sensitive data of U.S. citizens and make it available to Russian government actors, the department said in a decision dated June 14.

“The Department of Commerce’s action against Kaspersky Labs was taken to address a substantial threat to U.S. national security," an agency spokesperson said in a statement to The Associated Press Tuesday — adding that the action “was not taken lightly,” as it resulted from a thorough investigation and assessment of the risks posed by the products and services the company provides.

Kaspersky has previously denied that it is a security threat. In a June 21 response to the Commerce Department's decision, the company said it cannot deliberately obtain sensitive data on Americans and that its operations and employees in Russia can only access aggregate or statistical data not attributable to a specific person.

The company also argued that the government had based its decision on the “geopolitical climate and theoretical concerns” rather than independently verifying risk. Kaspersky said this would benefit cybercriminals, while also diminishing consumer choice.

In last month's decision, the department said it had considered Kaspersky’s objections to the initial findings of its investigation, but found that the decision to ban its software was still “well supported.”

Kaspersky boasts one of the world’s most popular consumer antivirus products and a research unit widely respected for routinely exposing elite hacking groups. In the company's announcement this week, Kaspersky said its “business remains resilient” and that its priority to “protect our customers in any country from cyberthreats” was unchanged.

Journalist Kim Zetter first reported the news of the company shutting down its U.S. operations on Monday.