International companies that have not withdrawn from Russia have made billions in sales in the past year. This is according to a new report from the Kyiv School of Economics (KSE). According to the researchers, all these companies together have generated approximately USD 214 billion (converted to more than EUR 196 billion) in revenue with their Russian subsidiaries.
After the Russian invasion of Ukraine, many international companies decided to suspend their activities in Russia or to withdraw completely from the country. But some large companies, such as tobacco producer Philip Morris and soft drink giant Pepsi, left their branches in Russia untouched. The Dutch beer brand Heineken, despite the promise to withdraw, also introduced new products to the Russian market last year.
The high profits of the companies are problematic because they use them to fund the Russian treasury, the researchers argue. For example, the Russian branch of Philip Morris had a turnover of 7.9 billion dollars, on which the company paid 206 million dollars in income tax to the Russian government. European companies, including the French yogurt producer Danone and the food company Unilever, have a turnover of 75.2 billion dollars (68.9 billion euros) with their combined Russian divisions, of which almost 600 million dollars (550 million euros) disappeared into the Russian treasury.
The KSE adds that the findings are likely “just the tip of the iceberg.” Even more money may flow to the Russian government via the international companies, because the taxes paid on employees’ salaries and VAT are not included in the figures.
Eva Selderbeek
ANP/EPA – Demonstrators in the UK protested Unilever’s work in Russia last year.
2023-07-04 08:37:30
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