In 2023, Western banks remaining in the Russian Federation paid over €800 million in taxes, four times the amount paid in 2021.
Western banks paid record taxes in Russia
The Financial Times writes that the seven largest European banks by assets in Russia — Raiffeisen Bank International, UniCredit, ING, Commerzbank, Deutsche Bank, Intesa Sanpaolo and OTP — reported a combined profit of over €3 billion in 2023.
These profits were three times larger than in 2021, and were partly generated by funds that banks cannot withdraw from the country, the publication writes.
Because of this jump in profitability, banks paid about €800 million in taxes to the Russian Federation. Analysis by the Financial Times showed that they paid €200 million in taxes in 2021.
This is an example of how foreign companies that remain in the Russian Federation help the Kremlin maintain financial stability despite sanctions.
Over half of the €800 million in taxes fell on the Austrian Raiffeisen Bank International, which has the largest presence in the Russian Federation among others.
MEPs called on the Austrian authorities to encourage Raiffeisen to leave Russia
In April, MEP and representative of the Renew Europe political group Piatras Aušträvičius published an open letter in which a group of MEPs appealed to the Austrian authorities.
We call on you, respected leaders of Austria, to encourage Raiffeisen Bank International to adhere to its own statements and stop its activities in the Russian Federation. We call on you to ensure that all Austrian companies comply with the restrictive measures in place and do not contribute to Russia's ability to wage its illegal and unjustified war against Ukraine and its people, the letter reads.
MEPs emphasised that the bank's statements and actions contradict each other — Raiffeisen Bank International has become the Western borrower with Russia's most significant operational activity.
Moreover, unlike other Western banks that are reducing their activities in Russia, Raiffeisen Bank International has increased the number of local staff to about 10,000 and plans to increase it further, the letter says.
At the beginning of April, the bank announced that it had not decided on the withdrawal date from the Russian Federation.
