Western corporations operating in Russia contributed a staggering £2.8 billion in profit taxes during 2023, highlighting the continued financial ties between international businesses and Moscow despite widespread sanctions following the Ukraine invasion.
The revealing data, compiled by campaign group B4Ukraine and the Kyiv School of Economics Institute, demonstrates that businesses from G7 and EU nations dominated the top tax contributors, occupying 17 of the 20 highest-paying positions. The total tax contribution, including value added tax, payroll, and exit taxes, reached approximately £17.3 billion in 2023 alone.
US-based giants led the charge, with Philip Morris International, PepsiCo, Mars, Procter & Gamble, and Mondelez collectively paying £960 million in profit taxes. German companies ranked second, contributing £554 million, while Austrian businesses, primarily led by Raiffeisen Bank International, paid £463 million.
The sustained corporate presence in Russia comes despite the Kremlin’s increasingly restrictive policies towards western businesses attempting to exit the market. Recent legislation has imposed heightened exit taxes and mandated substantial discounts on assets sold by companies from “unfriendly” nations.
These substantial tax contributions coincide with Russia’s defence ministry announcing a record £106.9 billion military budget for 2025, raising concerns about western companies inadvertently supporting Moscow’s military capabilities through their continued operations.
Economic experts suggest that companies face a stark choice: immediate withdrawal or complete commitment to the Russian market. As Vasily Astrov from The Vienna Institute for International Economic Studies notes, those who delayed their exit decisions now face significant financial penalties, demonstrating the costly consequences of indecision in this complex geopolitical landscape.
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