European Banks in Russia Pay Kremlin Over 800 Million Euros in Taxes Despite Promises to Reduce Presence
Seven of the largest European banks in Russia paid over 800 million euros in taxes to the Kremlin last year, according to the Financial Times. This figure is four times higher than pre-war levels, despite promises made by these banks to minimize their presence in Russia following the full-scale invasion of Ukraine.
The banks in question — Raiffeisen Bank International, UniCredit, ING, Commerzbank, Deutsche Bank, Intesa Sanpaolo, and OTP — collectively reported a profit of over 3 billion euros in 2023. This profit, which tripled compared to the previous year, was partially generated through funds that banks are unable to withdraw from the country, resulting in increased tax payments.
The taxes paid by these European banks represent approximately 0.4% of all expected non-energy budget revenues in Russia for 2024. This highlights how foreign companies that choose to remain in the country are aiding the Kremlin in maintaining financial stability in the face of Western sanctions.
