The US and Microsoft reach an agreement on violation of established sanctions

The United States and Microsoft Corp said Thursday that they reached an agreement on Thursday over the apparent violations of sanctions and export controls by the technology company, which it voluntarily disclosed.

Microsoft has agreed to remit approximately $3 million to settle its potential civil liability for more than 1,300 apparent sanctions violations related to restrictions on Cuba, Iran, Syria, and Russia that involve the export of services or software from the United States to sanctioned jurisdictions, said the Treasury Department.

The ministry added that Microsoft’s conduct was “non-irregular and voluntarily self-reported.”

Most of the breaches, which took place between 2012 and 2019, involved sanctioned Russian entities or individuals in the Crimea region of Ukraine, and occurred as a result of Microsoft’s inability to identify and prevent use of its products by parties under sanctions, the Treasury Department said.

Russia annexed Crimea in 2014 before launching a full-scale invasion of Ukraine in early 2022.

In an emailed statement to Reuters, Microsoft acknowledged failings in its compliance with the sanctions and said it had cooperated with the investigation and was pleased with the settlement.

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