Foreign businesses pay almost $20B in taxes to Russian budget year before invasion

In 2021, foreign businesses paid almost USD 20 billion in taxes to the budget of the Russian Federation, which accounted for one third of the Russian military budget.

This was reported by Natalia Savytska, researcher, head of the department, professor at the State Biotechnology University, during the presentation of the analytical report "The Impact of Civil Society on the Behavior of Companies in Connection with the Beginning of the Full-Scale Russian Invasion of Ukraine."

"At the beginning of the war, the presence of foreign companies in the Russian market was significant. In 2021, foreign businesses paid almost USD 20 billion in taxes to the Russian budget, which amounted to a third of the Russian military budget," Savytska said.

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She noted that out of the 100 most famous companies that Kantar ranked among the TOP 100 most valuable brands in the world in 2021, 78 were commercially active in Russia, had a physical presence in the Russian market, production facilities, a dealer network, etc.

These include Apple (1st position in the Kantar BrandZ ranking), 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), and Airbnb (99th position).

In addition, according to the study, the United States, Germany, the United Kingdom, and France are leading among the countries whose companies have conducted economic activities in the Russian market.

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The sectoral structure of foreign capital in the Russian economy before the war was dominated by oil and gas, tobacco companies, the FMCG28 sector (which includes producers of food, household chemicals, personal care products, etc., as well as mixed-assortment retailers), and the automotive industry.

As Ukrinform reported, after Russia's full-scale invasion of Ukraine, the annual list of the 50 largest companies in the Russian market was updated by almost half, 22 positions.