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Spotify Abruptly Cancels Planned Russian Expansion

MOSCOW, Russia (CelebrityAccess) — Music streaming service Spotify has cancelled their plans to launch in Russia and has dismissed Alexander Kubaneishvili who was to helm the division.

According to the BBC's Russian news service, Kubaneishvili announced in a letter to partners that the deal had fallen through and that Spotify has now "refused to launch in the foreseeable future".

Kubaneishvili cited "the economic crisis, the political situation, the new laws governing the internet" as the primary roadblocks in Spotify's Russian plans.

Kubaneishvili also revealed that he is no longer affiliated with the company, telling the Tass news agency: "My last official working day is 12 February. Speaking for myself, I can only confirm the fact that indeed, there will be no start-up in the nearest future."

Spotify had been eyeing a Russian expansion since early last year, with plans to have launched the service in early 2015 as a private company with limited liability to Spotify AB, the company's original Swedish operation. – Staff Writers