American companies paid over a billion dollars in taxes in Russia

American companies that continued their operations in Russia became the country's largest foreign taxpayers, paying over a billion dollars into the Russian budget in 2023. They are followed by companies from Germany and Austria.

According to a study by the Kyiv School of Economics and the B4Ukraine group, US businesses remaining in Russia paid a total of $1.2 billion in taxes on revenues of $30.5 billion. This data was published by Newsweek. Consequently, the US took the leading position among foreign taxpayers in Russia.

For comparison, in 2021, before the start of the war, American companies paid Russia a significantly smaller amount in taxes — $915.7 million on revenues of $50 billion.

Although many companies left the Russian market after the start of military operations, there was no mass exodus of American businesses. Research by the Yale School of Management shows that currently 123 US companies continue to operate in Russia, while the Kyiv School of Economics estimates this number at 328, including small firms.

The largest American taxpayers in Russia in 2023 included: Philip Morris ($220 million), PepsiCo ($135 million), Mars ($99 million), Procter & Gamble ($67 million), Mondelez ($62 million), Citigroup ($53 million), Cargill ($50 million), Johnson & Johnson ($42 million), Coca-Cola Hellenic ($34 million) and Weatherford ($32 million).

Nevertheless, companies on this list continue to declare their support for Ukraine. For example, Philip Morris donated $10 million to aid Ukraine, which is 20 times less than their tax payments in Russia. Mars sent aid worth $22.5 million to Kyiv, which is four times less than their tax payments.

Germany became the second-largest foreign taxpayer in Russia in 2023, paying $693 million, followed by Austria with $579 million.

Of particular significance in this context is the so-called "exit tax" introduced by Russian authorities for Western companies, as well as the mandatory 50% discount when selling their assets. According to Russian authorities, the Russian budget received $385 million through these mechanisms in the first quarter of 2024. 

Tax revenues from Western companies are expected to increase in 2025, as the tax reform will raise the corporate profit tax rate from 20% to 25%.