**Western Companies Paid Billions in Taxes to Russia Amid War**
A shocking investigation by Follow the Money has revealed that Western companies have paid at least 40 billion euros ($46 billion) in taxes to Russia over the past three years. This staggering figure represents almost one-third of Russia’s defense budget for 2025. The report, published on June 10, sheds light on the crucial role foreign firms continue to play in propping up Russia’s war chest despite Western sanctions and skyrocketing war expenditures.
**Russia’s Lifeline Amid Sanctions**
The investigation found that seventeen out of the twenty largest foreign corporate taxpayers in Russia come from G7 and EU countries, which are Ukraine’s main international supporters. This revelation is particularly striking given the significant military aid provided by Western governments to Ukraine to counter Russian aggression. The report notes that only 472 out of over 4,000 foreign companies have withdrawn from Russia since the outbreak of the full-scale war in Ukraine in 2022, while 1,360 have scaled down their operations.
**Top Taxpayers in Russia**
Austrian bank Raiffeisen emerges as the largest European payer of corporate taxes in Russia, with a whopping 457 million euros ($522 million) paid only in 2023. Other Western business giants, such as Philip Morris tobacco company, PepsiCo, UniCredit Bank, and Mars, have also continued to fill Russian coffers despite the ongoing conflict.
**Concerns for Employee Safety and Essential Products**
When questioned about their continued presence in Russia, some of these companies cited concern for the safety of their employees or argued that their products are essential for Russian consumers. However, these explanations do little to alleviate concerns about the moral implications of supporting a regime responsible for devastating war crimes.
**Exit Challenges and Punitive Measures**
The investigation highlights the difficulties faced by companies attempting to exit Russia’s market. Companies have reportedly had to pay over $170 billion in write-offs and exit taxes when deciding to leave. Russia has also been known to seize assets from companies that remain in the country, making it a challenging and costly affair for businesses looking to disengage.
**Russian President Putin’s Rhetoric**
In response to Western firms’ continued presence in Russia, Russian President Vladimir Putin has called for punitive action, stating that these companies must be “strangled” as part of a broader effort to suffocate the Russian economy. Despite this rhetoric, Russia continues to explore paths for re-engagement with foreign businesses. Putin has even instructed his government to prepare for the eventual return of Western firms.
**Conclusion**
The revelation that Western companies have paid billions in taxes to Russia amid war is a stark reminder of the complex dynamics at play in the ongoing conflict. As independent journalism continues to uncover the truth, it is essential to acknowledge both the challenges and the moral implications of supporting foreign businesses operating in countries with questionable human rights records.
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