Foreign businesses in Russia paid the Kremlin more than $20 billion in taxes in 2024. That would be enough to finance a million new soldiers for the Russian army.
Points of attention
- Foreign businesses in Russia paid more than $20 billion in taxes in 2024, an amount sufficient to finance the enlistment of a million soldiers for the Russian army.
- The top contributors to the Russian budget were Raiffeisen Bank, Chery Automobile, Philip Morris International, Japan Tobacco International, and Leroy Merlin.
- The financial participation of foreign businesses in Russia poses a threat to Western economic security, as it indirectly subsidizes arms purchases and military salaries.
Foreign business in Russia finances the army of the aggressor country
The publication refers to exclusive data provided by the B4Ukraine group and the Kyiv School of Economics (KSE) Institute.
According to them, in 2024 alone, foreign companies in the Russian Federation paid at least $20 billion in taxes.
This amount would be enough to pay for the recruitment of a million soldiers into contract service in the Russian army at the most expensive rates — these are currently in effect in the Kemerovo region of the Russian Federation, where a soldier receives $18,400 for signing a contract.
In total, foreign businesses have paid $60 billion in taxes in Russia since 2022. This is half of Russia's military budget for 2025.
Who paid the most taxes?
Among all foreign companies that still have business in Russia, five companies were highlighted that paid the most taxes to the Russian budget in 2024:
Raiffeisen Bank, financial services (Austria) — $402 million;
Chery Automobile, car manufacturer (China) — $222 million;
Philip Morris International, tobacco company (multinational) — $220 million;
Japan Tobacco International, tobacco company (Japan) — $182 million;
Leroy Merlin, home and gardening goods retailer (France) — $128 million.
The publication requested comments from representatives of Raiffeisen Bank, Chery Automobile, Philip Morris and Leroy Merlin by email. JTI responded separately, stating that the company operates worldwide regardless of sanctions, and taxes on tobacco products will still be paid in Russia regardless of who owns the company's Russian assets.
JTI operates globally and continues its manufacturing and sales activities in Russia in full compliance with all applicable regulations... We continue to closely monitor legislative developments as well as the situation on the ground and are reviewing our options.
B4Ukraine and KSE, for their part, stated that the presence of foreign businesses in the Russian market is not just an economic problem for the G7 and allies, but a direct threat to the economic security of Western countries.
By making significant tax contributions to Russia’s military budget, foreign companies effectively subsidize arms purchases and military salaries. Their financial involvement directly undermines Ukraine’s defense capabilities and contributes to broader regional insecurity.
