NVIDIA spent $16 million to close its office and completely withdraw from russia

The American company NVIDIA was not able to leave Russia without losses. To do so, it had to spend several million dollars.

Here's What We Know

A few days after Russia's large-scale invasion to Ukraine, NVIDIA stopped the direct supply of products to Russia. After more than six months, we can say that the "green company" has officially left the Russian market.

This is evidenced by NVIDIA's quarterly report on Form 10-Q. What is interesting, the cessation of direct sales and withdrawal from Russia had almost no effect on the company's revenue, because the main source of revenue were video cards, and Russian retailers continue to sell them. But now they are importing adapters from other countries under the so-called "parallel import" scheme.

In the last fiscal year Russia took 2% in the total revenue structure of NVIDIA. The share of the Russian market in the gaming segment was 4%, i.e. approximately $500 million. In the future a slight decrease in revenue is expected due to the cessation of sales of professional video cards and accelerators which are not imported in the country by "parallel imports".

Back in the summer NVIDIA stopped licensing its proprietary software to Russian customers, and last month it was reported that the office was closing down. NVIDIA's chief financial officer said that the company spent $16 million to restructure the business and cease operations in Russia.

Source: NVIDIA