A month after the federal government banned the sale and distribution of its products, beleaguered antivirus software vendor Kaspersky Lab is pulling up stakes and leaving the United States.

The U.S. Commerce Department in late June announced the ban, saying the organization – a subsidiary of a Russia-based global cybersecurity company – poses a national security risk. In addition, Commerce officials placed Kaspersky Lab, Russian parent company Kaspersky Group, and Kaspersky Labs Ltd. in the UK on its Entity List for allegedly supporting with Russian military and intelligence agencies’ cyber-intelligence efforts.

A day later, the U.S. Treasury Department sanctioned 12 executives and senior leaders for their work in Russia’s technology sector.

The weight of the ban and sanctions – which added to previous actions by the U.S. government against the company – made it impossible for Kaspersky to continue operations in the country, according to executives. In a statement, they said Kaspersky beginning July 20 “will gradually wind down its US operations and eliminate US-based positions.”

No More Sales or Updates

The ban against Kaspersky prohibits it not only from selling its software in the country but also to provide updates to software that already is being used. Kaspersky would no longer be able to install software into U.S. companies starting July 20 or to send product updates beginning September 29.

Shutting down the business – which was first reported by Zero Day – will include layoffs, with reportedly fewer than 50 people losing their jobs.

Kaspersky officials pushed back at the Commerce Department’s decision, saying it was made for geopolitical and theological reasons rather than through an evaluation of the integrity of the company’s products services.

“Kaspersky does not engage in activities which threaten U.S. national security and, in fact, has made significant contributions with its reporting and protection from a variety of threat actors that targeted U.S. interests and allies,” they wrote, noting that the company has operated in the United States for more than two decades.

Executives also made their case in a lengthy blog post, calling the decision “unjust and baseless” and outlining the company’s history in the cybersecurity field from its founding in 1997 through this year. Kaspersky offers a range of antivirus and other security products and services for both businesses and consumers.

Worried About Russia

However, Commerce Secretary Gina Raimondo said in a statement that “Russia has shown time and again they have the capability and intent to exploit Russian companies, like Kaspersky Lab, to collect and weaponize sensitive U.S. information, and we will continue to use every tool at our disposal to safeguard U.S. national security and the American people.”

Raimondo noted that it was the first time her department has used the authority of its Office of Information and Communications Technology and Services (ICTS).

The worry is that Russian intelligence agencies could use Kaspersky products sold in the United States as a way to infiltrate government and organizations IT environments. It’s a similar concern that U.S. agencies and lawmakers have had about other tech companies based in adversarial states like China – such as Huawei and TikTok – selling their products in the United States.

The U.S. government already had been limiting what Kaspersky could do in the country. In 2017, the Department of Homeland Security prohibited federal agencies from using Kaspersky products.

A National Security Risk

The Commerce Department said it made its decision on the latest ban following a “lengthy and thorough investigation” that found that Kaspersky’s “continued operations in the United States presented a national security risk – due to the Russian Government’s offensive cyber capabilities and capacity to influence or direct Kaspersky’s operations – that could not be addressed through mitigation measures short of a total prohibition.”

Kaspersky executives initially said it would pursue legal options for keeping its U.S. operations running, but apparently eventually didn’t see a path forward that would allow them to overturn the ban. They said the company would continue their presence in other parts of the world, including Europe.