How Western Businesses Help Russia’s War: A Study

Last year, international companies (not only Western) present in Russia built in the country revenues of 214 billion dollars, paying around 3.5 billion in taxes into Moscow’s coffers. To avoid image damage and boycotts, some try to take time and “resize” their productions

Since the beginning ofRussian invasion of Ukraine many western companies quickly left the Russiabut many others – more than one can imagine – have remained, alleviating the consequences of the sanctions for the Russians and pouring into the coffers of the Kremlin billions of dollars in taxes. According to the report “The Business of Staying” carried out by the B4Ukraine organization and the Kyiv School of Economics (KSE), last year the international companies (not only Western) present in Russia made in the country revenues of $214 billion, pouring around 3.5 billion in taxes into Moscow’s coffers. The report considers this figure only the tip of the iceberg, as it does not take into account the taxes paid by Russian employees and VAT on transactions, nor the spin-offs of local suppliers and contractors. These revenues have allowed the Kremlin to rely on valuable resources for finance the war, and to maintain a certain social tranquility in the country; both from the point of view of employment levels and as regards the availability of products in warehouses and on the shelves. While the data covers companies from around the world, the majority of taxes were paid by US-based companies United States ($712 million), followed by those in Germany (402 million), Swiss (275 million) e United Kingdom (205 million). Companies headquartered inEuropean Union they poured 594 million in taxes. Numbers higher than those of companies based in Chinawho paid $184 million in taxes despite there being almost no Chinese exodus from Russia.