European banks paid 800 million euros in taxes to Kremlin
European banks are paying for Russia's war against Ukraine (Getty Images)
The top seven European banks by asset size in the country forked over more than 800 billion euros in taxes to the Kremlin last year, quadrupling pre-war levels, despite pledges to minimize their presence in Russia following the full-scale invasion of Ukraine, according to the Financial Times.
These banks - Raiffeisen Bank International, UniCredit, ING, Commerzbank, Deutsche Bank, Intesa Sanpaolo, and OTP - reported a combined profit of over 3 billion euros in 2023. This profit was three times higher than in 2021 and partly accrued from funds that banks cannot repatriate, leading to increased tax payments.
The taxes paid by European banks, amounting to around 0.4% of all expected non-energy revenues in Russia's 2024 budget, exemplify how foreign companies remaining in the country are aiding the Kremlin in maintaining financial stability despite Western sanctions.
Withdrawal of Western companies from Russia
According to analysis from the Yale School of Management, around 1000 companies have exited business operations in Russia, although hundreds still operate and contribute to tax revenues. Among them are Mondelez International, PepsiCo, Auchan, Nestle, Unilever, Reckitt, and the largest European banks.
Earlier, the Financial Times reported that the largest European companies suffered at least 100 billion euros in direct losses from their operations in Russia following Russia's full-scale invasion of Ukraine.
