An Auchan supermarket in Moscow, Russia.
Kremlin made €3 billion in corporate taxes from the EU during the war in Ukraine, according to new report. Leroy Merlin and Auchan occupy third and seventh place in recipes of Russian origin.
In 2023, European Union companies contributed around 3 billion euros in taxes for the Kremlin. Despite the , many Western companies, especially in the retail and tobacco sectors, continued to operate in Russia, allowing the Kremlin to strengthen its war economy.
The figures come from a report by the NGOs B4Ukraine and Squeezing Putin, prepared in collaboration with the Kiev School of Economics Institute. The document, this Monday, highlights that foreign companies, especially those that sell unauthorized products such as food, tobacco and clothing, play a significant role in the Russian economy.
Including companies from pro-Ukraine and pro-Russia countries, total tax contributions from foreign companies reached 21.6 billion dollars (21.2 billion euros) last year.
Philip Morristhe tobacco giant, has emerged as Russia’s biggest foreign revenue generator — earning nearly $7 billion in 2023. The tobacco maker Marlboro paid R$208 million in taxes, up from R$144 million in 2022, according to .
Leroy Merlin e Auchanfrom the French Mulliez family, rank third and seventh in recipes of Russian origin, respectively.
The report, titled Corporate Enablers of Russia’s War in Ukraine, identified more than 1,600 companies operating in Russia, with more than 900 from G7 countries publicly supporting Ukraine. G7 and EU companies are among the top contributors in Russia, with 16 of the top 20 contributors coming from these regions.
Collectively, the EU companies generated €79 billion in revenue in 2023a decrease from €111.4 billion in 2022, but its tax contributions remained stable.
Although many Western companies exited Russia after the 2022 invasion of Ukraine, such as Lufthansa Technik and Carlsberg, hundreds of companies remained.
A spokesperson for Leroy Merlin says the company has transferred its Russian operations to local management at the end of 2023, while Auchan declined to comment.
The report also includes food conglomerates such as Nestléa Mars ea Pepsias well as German retailers Metro e Globusamong the main contributors.
Chinese car manufacturers, including frienda Great Wall Motors ea Geelyare also highlighted in the report.
A tax rate on corporate profits in Russia expected to increase from 20% to 25% in 2024which suggests that tax contributions from Western companies could increase further.
O luxury market in Moscow also continues to thrive despite Western sanctions and the withdrawal of global brands. High-end goods, including high-end designer clothes, sports cars and jewelry, remain affordable to wealthy Russians – for alternative channels.
