Foreign businesses pay US$20 billion to Russian budget year before full-scale invasion of Ukraine
Foreign businesses paid almost US$20 billion in taxes to the Russian budget in 2021, which makes for a third of the Russian military budget.
Source: Nataliia Savytska, professor of the State Biotechnological University, presenting the analytical report The Impact of Civil Society on the Behaviour of Companies in Connection with the Beginning of the Russian Federation’s Full-Scale Invasion of Ukraine; Ukrinform.
"At the beginning of the war, the presence of foreign companies in the Russian market was significant. In 2021, foreign businesses paid almost US$20 billion in taxes to the budget of the Russian Federation, which accounted for a third of the military budget of the Russian Federation," Savytska said.
She noted that out of the 100 most famous companies that, according to Kantar, were among world’s top 100 Most Valuable Brands in 2021, 78 conducted commercial activities in Russia, had a physical presence on the Russian market, production facilities, dealer network, etc.
These include: Apple (1st position in the Kantar BrandZ rating), Google (2nd position), McDonald's (6th position), PepsiCo (14th position), Coca-Cola (17th position), Samsung (44th position), L'Oréal (50th position), Toyota (66th position), IKEA (91st position), KFC (95th position), Airbnb (99th position).
In addition, the study results indicate that the United States, Germany, the UK, and France are the leaders among the countries whose companies carried out economic activities in the Russian market.
The Russian economy's sectoral structure of foreign capital was dominated by oil and gas, tobacco companies, FMCG28 (it includes manufacturers of food, household chemicals, personal care products, etc., as well as networks of retailers of mixed assortment) and the automotive industry.
Background: Danish brewing company Carlsberg, which severed all ties with its Russian business, refuses to enter into an agreement with the Russian government that would make Moscow's seizure of assets legitimate.
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