Foreign companies in Russia are contributing heavily to the Kremlin's war budget as they continue to sell unsanctioned goods, such as food products, tobacco and clothing, according to a report by the Institute of the Kyiv School of Economics.
The total amount increases to 21,2 billion euros for 2023, taking into account companies from countries that are pro-Ukrainian or direct supporters of the Russian war, reports Politiko.
Tobacco giant "Philip Morris" is the largest foreign company in Russia by total revenue. The Marlboro maker generated revenue of nearly seven billion dollars in 2023 and paid 208 million euros in taxes, compared to 144 million a year earlier.
Most Western companies are willing to leave the country, or have already done so, but hundreds remain in Russia after the 2022 invasion of Ukraine is launched.
Of the 1.600 companies analyzed by the researchers, more than 900 are from G7 members that support Ukraine politically, financially and militarily, and 930 G7 and EU companies were the largest taxpayers in Russia, the report said.
Narrowing down to the EU, the report lists 827 firms that collectively generated $81,4 billion in revenue, down from $111,4 billion in 2022, but their corporate tax contributions remained stable at three billion, it said. in the report entitled "Corporate drivers of the Russian war in Ukraine".
The French are in the lead.
The French Mouliez family is still very much present in Russia. Their retail establishments Leroy Merlin and the Auchan supermarket chain in the company are ranked third and seventh in terms of revenue coming from business in Russia.
The top 20 also includes food conglomerates such as Nestle, Mars and Pepsi, along with German retailers Metro and Globus.
The corporate income tax in Russia will rise from 20 to 25 percent this year, which means that the contribution of Western companies to the Russian budget could grow even more.
Source: Phonet