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According to a report from campaign group B4Ukraine and the Kyiv School of Economics (KSE) Institute, shared exclusively with Newsweek, foreign companies operating in Russia paid at least $20 billion in taxes in 2024. This amount is sufficient to cover the salaries of one million Russian soldiers.
### Why It Matters
Since Russia’s full-scale invasion of Ukraine began on February 24, 2022, international pressure has led many companies worldwide to cease operations in Russia as a show of moral opposition and economic pressure against President Vladimir Putin’s regime. However, despite this, numerous firms continued their operations, contributing to the Russian economy through profit taxes.
### What To Know
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The figure of one million soldiers was calculated using reports that stated Russian soldiers in the Kemerovo Region earn $18,400 per contract. B4Ukraine and KSE Institute’s report also found that foreign companies have paid over $60 billion in taxes to Russia since the war began—half of Russia’s 2025 military budget.
The five largest taxpayers in Russia in 2024 were:
– Austrian bank Raiffeisen Bank ($402 million)
– Chinese car manufacturer Chery Automobile ($222 million)
– Multinational tobacco company Philip Morris International ($220 million)
– Japanese tobacco company Japan Tobacco International (JTI; $182 million)
– French home improvement and gardening retailer Leroy Merlin ($128 million)
JTI told Newsweek: “JTI operates globally and continues its manufacturing and sales operations in Russia in full compliance with all applicable regulations, including economic sanctions, export controls, and tax requirements. We continue to closely monitor legislative developments and the situation on the ground.”
Newsweek contacted Raiffeisen Bank, Chery Automobile, Philip Morris, and Leroy Merlin for comments.
Philip Morris International previously stated it suspended planned investments and scaled down its manufacturing operations in Russia when the war broke out. In February 2023, CEO Jacek Olczak told The Financial Times that he was unwilling to sell the business on Kremlin terms due to potential financial losses.
### What People Are Saying
B4Ukraine and KSE Institute’s report stated: “The presence of such firms in the Russian market is not merely a commercial concern for the G7 and allies; it constitutes a growing economic-security threat with implications beyond the battlefield. By making significant tax contributions, foreign companies are effectively subsidizing weapon procurement and military salaries. Their financial involvement directly undermines Ukraine’s defensive capacity and contributes to regional insecurity.”
Mark Temnycky, a nonresident fellow at the Atlantic Council think tank’s Eurasia Center, told Newsweek: “Western companies should continue to withdraw their goods and services from Russia. Sales made by these companies help boost the Russian economy, supporting Putin’s war, as funds from these transactions finance Russia’s invasion of Ukraine.”
### What Happens Next
Whether these companies will continue doing business in Russia or succumb to international pressure remains uncertain.
Meanwhile, foreign countries are also indirectly aiding Russia’s assault on Ukraine through other means:
– By importing Russian oil via third-party countries
– By supplying electronic components to Russian weapons via intermediary trade routes
This situation highlights the complex and multifaceted nature of economic support for a warring nation.
