Russia earned billions in taxes after western companies made record profits amid Ukraine war

The largest Western companies still operating in Russia recorded a combined net profit of 1.1 trillion rubles ($13.3 billion) in 2022, according to a report by Novaya Gazeta Europe, the leading independent Russian news website. This represents a significant increase of 54 per cent compared to the previous year.

The findings were based on the financial statements of Russian-registered legal entities that are either fully or partially owned by the western entities.

In terms of corporate income taxes, Western companies contributed a total of 288 billion rubles ($3.5 billion) to Russia’s budget revenue last year, amounting to 1 per cent of the total. French, British, and US companies were the largest taxpayers, with contributions of 55 billion, 47 billion, and 40 billion rubles, respectively.

Western business in Russia amid Ukraine war: The scale

Ukrainian researchers estimate that there are over 1,300 Western companies currently active in Russia, The Moscow Times reported.

However, more than 700 of these companies have suspended their operations, and 241 have completely exited the country in the aftermath of war in Ukraine.

Western business in Russia amid Ukraine war: Top winners

Despite withdrawing from certain assets, French energy group TotalEnergies managed to double its net profit to 269 billion rubles ($3.2 billion).

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Raiffeisen Bank, one of the major Western banks still present in Russia, nearly quadrupled its net profit to 141 billion rubles ($1.7 billion).

Among the top ten earners in Russia are well-known companies such as PepsiCo, British Petroleum, Japan Tobacco, Mondelez International (formerly Kraft Foods), Mars, the packaging giant Mondi, Kia, and the multinational building materials company Knauf.

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