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 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.
“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.”
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.”
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.”
Group-IB was founded in Moscow and announced it would move from Russia to Singapore in 2018, when then-CEO Ilya Sachkov 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.
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. ®