Google is moving its engineering office out of Russia after the government laid down new rules that require more data to be stored locally.
The new law is expected to take effect in 2015. It states that Internet companies should hold data that are related to Russians at data centers found within the country. The law will incur strict penalties in cases of default.
There are about 50 employees that would be affected by the shutdown. Google will be moving them out of Russia and will offer them a chance to work for the company in a different location. However, other departments, such as sales and support, will continue operating in Russia.
"We are deeply committed to our Russian users and customers and we have a dedicated team in Russia working to support them," said Google.
Despite the shutdown, Google has plans to increase its business investment in Russia next year. Similarly, the tech company has made internal changes in other countries such as Norway, Finland and Sweden.
Google is one of the leading tech companies in Russia. The company's share in the search market climbed up to 31 percent in the third quarter compared to the 27 percent during the first.
Yandex, its biggest rival in the country, was originally calculated to have a 62 percent market share, but the figure dropped to 60 percent.
Android, Google's smartphone software, currently has 85 percent in market share in Russia.
Google has recently been going through a number of issues involving legislation in different countries. In the middle of the week, it announced that it is pulling down its Google News portal in Spain. Google believed that the country's new intellectual property law requiring it to pay Spanish publications for using their content is unsustainable.
In 2010, Google pulled out partially from China as a way of evading self-censorship over its search engine. The decision was made after the company discovered a cyber attack that targeted the accounts of human rights activists. As a result, users visiting the company's Chinese search site had to be redirected to its Hong Kong site.
