Latest news with #B4Ukraine
Yahoo
2 days ago
- Business
- Yahoo
Western firms reportedly paid at least $46 billion in taxes to Russia amid full-scale war in Ukraine
Western companies have paid at least 40 billion euros ($46 billion) in taxes to Russia over the past three years, according to an investigation by investigative outlet Follow the Money published on June 10. This figure represents almost one-third of Russia's defense budget for 2025. Seventeen of the 20 largest foreign corporate taxpayers in Russia come from G7 and EU countries, Ukraine's main international supporters, the investigative outlet wrote, citing an earlier report by the Kyiv School of Economics (KSE) and the B4Ukraine association. Foreign firms still operating in Russia represent a crucial lifeline for Russia's war chest amid Western sanctions and skyrocketing war expenditures. Earlier reports by KSE said that only 472 of over 4,000 foreign companies have withdrawn from Russia after the outbreak of the full-scale war in Ukraine in 2022, while 1,360 have scaled down their operations. Austrian bank Raiffeisen remains the largest European payer of corporate taxes in Russia, with 457 million euros ($522 million) paid only in 2023. Philip Morris tobacco company, PepsiCo, UniCredit Bank, Mars, and other Western business giants have also continued filling Russian coffers, even though Western governments have donated some $170 billion in military aid to Ukraine to face Russian aggression, according to the investigation. The firms provided various explanations for their continued presence in Russia. Some argued that their products are essential for Russian consumers, while others cited concern for the safety of their employees, the outlet reported. Follow the Money also noted that Russia makes it difficult for companies to exit its market, for example, by allowing them to sell their assets only at extremely low prices. Companies that have decided to leave the market reportedly had to pay over $170 billion in write-offs and exit taxes. Russia has previously directly seized assets of some companies that had remained in the country. Russian President Vladimir Putin called for punitive action against Western companies still operating in Russia, saying they must be "strangled" in response to what he described as Western attempts to suffocate the Russian economy. Despite the rhetoric, Russia continues to explore paths for re-engagement with foreign businesses. In February, Putin instructed his government to prepare for the eventual return of Western firms. Still, no formal requests have been received from companies seeking re-entry, according to Dmitry Medvedev, deputy chairman of Russia's Security Council and former president. Read also: Key to Russia's potential defeat lies in its economy We've been working hard to bring you independent, locally-sourced news from Ukraine. Consider supporting the Kyiv Independent.
Yahoo
12-03-2025
- Business
- Yahoo
Raiffeisen Bank International's subsidiary remains invested in sanctioned Russian entities, report says
Raiffeisen Bank International's (RBI) Russian assets manager continues to hold and promote investments in sanctioned Russian companies and government bonds, according to a joint investigation by the BankTrack NGO and the B4Ukraine coalition published on March 12. As of January, Raiffeisen Capital held around 31.7 billion rubles ($365 million) in shares and bonds in entities sanctioned by the U.S. and the EU for their role in supporting Russian aggression in Ukraine, the report said, citing financial documents. This sum is only part of the overall value of 70.9 billion ($818 million) rubles reportedly held across 10 funds. Austria's Raiffeisen banking group has been long scrutinized for failing to exit the Russian market despite the EU sanctions imposed at the outbreak of the full-scale war against Ukraine in 2022. The investigation highlights that these assets included roughly 2.7 billion rubles ($31 million) in state bonds issued after March 9, 2022, a cut-off date past which the EU banned trade in any transferable securities issued by the Russian government. The asset manager's other investments reportedly include about 1.6 billion rubles ($18.5 million) worth of shares in the Russian state-owned bank Sberbank and 2.2 billion rubles ($25.4 million) in the state energy giant Gazprom, both under Western sanctions. Raiffeisen remains the largest Western bank still operating in Russia, despite pleding in July 2024 that it would "drastically" scale down its business in the country. "We must call these investments what they are: war profiteering with reckless disregard for the Ukrainian people and for European efforts to sanction the Russian war machine," said Max Hammer, a human rights campaigner at BankTrack. "RBI must address and be made to answer for these violations, and it must provide detailed information on its financial links to the Russian war machine. If it fails to do so, European authorities should not hesitate to respond appropriately." The authors of the report argue that Raiffeisen Capital's investment activities may contravene European sanctions legislation. "RBI has previously claimed that its Russian business is subject to rigorous due diligence and sanctions compliance checks, but these due diligence procedures have clearly not been enough to prevent the bank from investing in key sponsors of Russia's war of aggression," Nezir Sinani, the executive director at B4Ukraine, said in a statement. "The time for RBI to decisively sever its relationship with Russia's wartime economy is long overdue." Raiffeisen Capital has not responded to the Kyiv Independent's request for comment at the time of publication. Read also: US Chamber of Commerce in Russia readies proposals on sanctions relief We've been working hard to bring you independent, locally-sourced news from Ukraine. Consider supporting the Kyiv Independent.
Yahoo
20-02-2025
- Business
- Yahoo
US business owners risk being ‘robbed and killed' if they return to Russia
US companies returning to Russia risk having their businesses and staff 'robbed and killed', campaigners have warned, amid calls from the Trump administration to rebuild economic links. Sir Bill Browder, a financier turned anti-Russian corruption campaigner, said American businesses should be wary of the risks of returning to the country. Sir Bill, whose fund was once Russia's biggest foreign investor, said: 'American companies will do what's in their self interest, and there's no self interest in going into Russia where you can be robbed and killed. Nobody is going to risk their capital.' Sergei Magnitsky, a lawyer who represented Sir Bill in Russia, was tortured and killed in a Moscow prison in 2009 after he uncovered a web of alleged corruption. Sir Bill has since been on a mission to secure justice for the Magnitsky family. In 2012, the Magnitsky Act was passed in the US to punish those who could have been involved in his death. His comments come after Marco Rubio, the US secretary of state, claimed there were 'incredible opportunities that exist to partner with the Russians, geopolitically on issues of common interest and frankly economically'. Closer economic ties between the US and Russia were discussed at a meeting between the two countries in Saudi Arabia this week, which principally focused on how to end the war in Ukraine. The summit has provoked panic and outrage in Kyiv and other European capitals for excluding the Ukrainians and European leaders. Sir Bill said Western investment was unlikely to pour back into Russia despite Moscow's charm offensive of the Trump administration as 'nobody is going to want to get caught in that mess'. He said: 'The only thing that might happen is that companies which sell products into Russia [could start reselling products there], but nobody is going to invest a penny over there.' B4Ukraine, a campaign group that has pressured businesses to leave Russia, said it was calling on 'all Western businesses to stay out of Russia until it fully withdraws from Ukraine and justice is served to the Ukrainian people'. It added: 'Any company choosing to return before then will be complicit in enabling an illegal war and occupation. There is no ethical way to operate in a country waging a genocidal war against its neighbour.' Sergei Lavrov, Russia's foreign minister, said after the meeting with Mr Rubio this week that there was 'great interest ... in removing artificial barriers to the development of mutually beneficial economic cooperation'. Kirill Dmitriev, the head of Russia's sovereign wealth fund, claimed US businesses could return to within months. He told Reuters that the Russian Direct Investment Fund 'expects a number of American companies to return to the Russian market in the second quarter of 2025'. Mr Dmitriev said he believed US oil companies that had 'very successful business in Russia' would 'at some point' return. He added: 'Why would they forego these opportunities that Russia gave them to have access to Russian natural resources?' At this week's meeting in Saudi Arabia, the sovereign wealth chief handed out a document showing that American companies had walked away from around $324bn (£257bn) of investments by quitting Russia, according to The New York Times. Nezir Sinani, of B4Ukraine, said the Kremlin's control over the Russian economy meant businesses had no certainty about investments there. He said: 'Companies rushing back to Russia are playing a reckless game of Russian roulette. No matter what deal the Trump administration strikes with the Kremlin, Russia remains a lawless, high-risk market where foreign businesses are at the mercy of an unpredictable regime. 'The Russian government has a long history of seizing assets, weaponising regulations and using businesses as pawns in its geopolitical games. Any company that returns is gambling with its investments, exposing itself to sudden expropriation, and the whims of an authoritarian state that views Western firms as expendable.' The Kremlin has been accused of illegally taking control of the assets of some Western businesses such as Carlsberg and Danone, whose Russian subsidiaries were seized in 2023 as they were trying to exit the country. This came after Vladimir Putin signed a presidential decree that gave him powers to commandeer Western businesses. Jacob Aarup-Andersen, Carlsberg's chief executive, accused Russia of having 'stolen' his subsidiary in the country. Mr Sinani said: 'Beyond financial risk, the reputational damage could be catastrophic. Companies that once took a stand by leaving will be seen as hypocrites, prioritising profit over principle. The message is clear: doing business in Russia isn't just risky – it's a moral and strategic failure.' Ukraine on Wednesday said it would continue to 'defend our right to exist' after Mr Trump blamed the country for starting the war in 2022 and launched a series of attacks on President Volodymyr Zelensky. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
20-02-2025
- Business
- Telegraph
Western business owners risk being ‘robbed and killed' if they return to Russia
US companies returning to Russia risk having their businesses and staff 'robbed and killed', campaigners have warned, amid calls from the Trump administration to rebuild economic links. Sir Bill Browder, a financier turned anti-Russian corruption campaigner, said American businesses should be wary of the risks of returning to the country. Sir Bill, whose fund was once Russia's biggest foreign investor, said: 'American companies will do what's in their self interest, and there's no self interest in going into Russia where you can be robbed and killed. Nobody is going to risk their capital.' Sergei Magnitsky, a lawyer who represented Sir Bill in Russia, was tortured and killed in a Moscow prison in 2009 after he uncovered a web of alleged corruption. Sir Bill has since been on a mission to secure justice for the Magnitsky family. In 2012, the Magnitsky Act was passed in the US to punish those who could have been involved in his death. His comments come after Marco Rubio, the US secretary of state, claimed there were 'incredible opportunities that exist to partner with the Russians, geopolitically on issues of common interest and frankly economically'. Closer economic ties between the US and Russia were discussed at a meeting between the two countries in Saudi Arabia this week, which principally focused on how to end the war in Ukraine. The summit has provoked panic and outrage in Kyiv and other European capitals for excluding the Ukrainians and European leaders. Sir Bill said Western investment was unlikely to pour back into Russia despite Moscow's charm offensive of the Trump administration as 'nobody is going to want to get caught in that mess'. He said: 'The only thing that might happen is that companies which sell products into Russia [could start reselling products there], but nobody is going to invest a penny over there.' B4Ukraine, a campaign group that has pressured businesses to leave Russia, said it was calling on 'all Western businesses to stay out of Russia until it fully withdraws from Ukraine and justice is served to the Ukrainian people'. It added: 'Any company choosing to return before then will be complicit in enabling an illegal war and occupation. There is no ethical way to operate in a country waging a genocidal war against its neighbour.' Sergei Lavrov, Russia's foreign minister, said after the meeting with Mr Rubio this week that there was 'great interest ... in removing artificial barriers to the development of mutually beneficial economic cooperation'. Kirill Dmitriev, the head of Russia's sovereign wealth fund, claimed US businesses could return to within months. He told Reuters that the Russian Direct Investment Fund 'expects a number of American companies to return to the Russian market in the second quarter of 2025'. Mr Dmitriev said he believed US oil companies that had 'very successful business in Russia' would 'at some point' return. He added: 'Why would they forego these opportunities that Russia gave them to have access to Russian natural resources?' At this week's meeting in Saudi Arabia, the sovereign wealth chief handed out a document showing that American companies had walked away from around $324bn (£257bn) of investments by quitting Russia, according to The New York Times. Nezir Sinani, of B4Ukraine, said the Kremlin's control over the Russian economy meant businesses had no certainty about investments there. He said: 'Companies rushing back to Russia are playing a reckless game of Russian roulette. No matter what deal the Trump administration strikes with the Kremlin, Russia remains a lawless, high-risk market where foreign businesses are at the mercy of an unpredictable regime. 'The Russian government has a long history of seizing assets, weaponising regulations and using businesses as pawns in its geopolitical games. Any company that returns is gambling with its investments, exposing itself to sudden expropriation, and the whims of an authoritarian state that views Western firms as expendable.' The Kremlin has been accused of illegally taking control of the assets of some Western businesses such as Carlsberg and Danone, whose Russian subsidiaries were seized in 2023 as they were trying to exit the country. This came after Vladimir Putin signed a presidential decree that gave him powers to commandeer Western businesses. Jacob Aarup-Andersen, Carlsberg's chief executive, accused Russia of having 'stolen' his subsidiary in the country. Mr Sinani said: 'Beyond financial risk, the reputational damage could be catastrophic. Companies that once took a stand by leaving will be seen as hypocrites, prioritising profit over principle. The message is clear: doing business in Russia isn't just risky – it's a moral and strategic failure.' Ukraine on Wednesday said it would continue to 'defend our right to exist' after Mr Trump blamed the country for starting the war in 2022 and launched a series of attacks on President Volodymyr Zelensky.
