The Kremlin has earned about 3 billion euros in 2023 in taxes from European Union companies that were, and some still are, active in Russia. This was reported by "Politico", citing a report published on Monday by B4Ukraine and Squeezing Putin, two non-governmental organizations and the Kiev Institute of Economics.
Foreign companies in Russia are major contributors to the Kremlin's war campaign, as they continue to sell unsanctioned goods such as food, tobacco and clothing. The total rises to $21.6 billion (€21.2 billion) for 2023, taking into account companies from countries that are pro-Ukrainian or strongly supporting Russia’s aggressive war.
Tobacco giant Philip Morris is the largest foreign payer in Russia. KSEI estimated that the Marlboro maker raked in almost $7 billion in revenue in 2023. The company paid €208 million in taxes, up from €144 million a year earlier.
While most Western companies are ready to leave the country or have already done so, several hundred have remained in Russia since Russian President Vladimir Putin launched his full-scale invasion of Ukraine in 2022. Late last year, Lufthansa Technik and Carlsberg exited the Russian market.
Of the 1,600 companies the researchers looked at, more than 900 were from G7 countries that have supported Ukraine politically, financially and militarily.
The report lists no fewer than 827 EU firms. Taken together, they “generated $81.4 billion (€79 billion) in revenue, down from $111.4 billion in 2022, but their corporate tax contributions remained stable at $3 billion,” the report, titled “Corporate Drivers of Russia’s War in Ukraine,” said.
The French Muliez family also remains heavily exposed to Russia. Its retail arm Leroy Merlin and supermarket chain Auchan are ranked No. 3 and No. 7 in terms of Russian-origin revenue in 2023.
A Leroy Merlin spokesman said that holding company ADEO had transferred ownership of its Russian branch to a local government by the end of 2023. Auchan did not immediately respond to a request for comment.
The top 20 also includes food conglomerates such as Nestlé, Mars and Pepsi, along with German retailers Metro and Globus. Chinese companies include automotive players such as Haval and its owner Great Wall Motors, but also Chery, Geely, owner of Volvo, FAW and Changan.
Corporate profit tax will rise this year in Russia to 25 percent from 20 percent, meaning the contribution of Western companies could rise even further.