Many International Corporations Defy Sanctions with Increased Tax Payments in Russia

In 2023, international companies remaining in the Russian market paid approximately $1.78 billion in profit taxes, marking an increase of $175 million compared to the previous year. This reflects a rise in the total tax contributions made by these companies to the Russian budget despite ongoing economic and political challenges.

According to KSE Institute monitoring, major contributors included Raiffeisen Bank ($491 million), Chery Automobile ($222 million), Philip Morris ($220 million), Japan Tobacco International ($182 million), UniCredit Bank ($154 million), and Pepsi ($135 million). Other notable companies include Leroy Merlin (estimated $125 million), Mars (estimated $99 million), Uniper SE ($79 million), and OTP Bank ($69 million).

These companies continue their operations in Russia despite international sanctions and pressure from the global community. Currently, 2,139 foreign companies are active in Russia. Another 1,349 are scaling down their operations, while 417 have completely exited the market.

Despite the reduction in the number of foreign companies, the overall amount of taxes paid by them is increasing. This is attributed to higher tax pressures and rates in Russia. Estimates suggest that foreign companies annually contribute around $20 billion in taxes, with this figure continuing to grow.

Additionally, in 2023, about 1,000 foreign companies that disclosed their financial statements paid a total of $6.4 billion in profit taxes, which is $200 million more than in 2022. This indicates that, despite economic and political hurdles, businesses continue to operate within the Russian market.

At present, over 2,100 international companies remain in Russia, while approximately 1,600 companies have either reduced their operations or fully exited the market. Recent exits include companies such as Banijay Group, Candy, Fujitsu, UPS, YouScan, Knorr-Bremse, Osram Licht AG, and Roshen.