Despite more than three years of full-scale war by the Russian Federation against Ukraine, 248 German companies remain in the Russian market, finding ways to circumvent restrictions and sanctions. They continue to operate in Russia, contributing significant funds to the aggressor’s budget.
This is reported by Finway
Tax Revenues and Impact on Russia’s Military Budget
In the past year alone, foreign companies that have not left the Russian market paid over 20 billion dollars in taxes. Since the beginning of the large-scale invasion, this amount has exceeded 60 billion dollars, accounting for nearly half of Russia’s military budget for 2025. The share of German companies in these revenues is particularly significant: they transferred over 500 million dollars in corporate tax, with total annual tax payments estimated at 1.7 to 2 billion dollars. For comparison, with such an amount, Russia could purchase approximately 10,000 Shahed strike drones, which increases the threat to Ukraine.
“Foreign companies that remained in Russia paid over $20 billion in taxes last year. The total amount since the beginning of the full-scale invasion exceeds $60 billion – nearly 50% of Russia’s military budget for 2025.”
Presence of German Business and Risks for Europe
Germany ranks second among foreign companies in terms of tax payments in Russia, surpassed only by the USA. Many German enterprises are concentrated in the consumer goods manufacturing sector, including well-known brands such as Hochland (cheese production) and Knauf (gypsum production). Although these companies do not formally violate EU sanctions, their activities contribute to filling Russia’s budget, strengthening industrial chains, and enhancing the technological capabilities of the aggressor country, which ultimately may support Russia’s war machine.
In 2024, the total turnover of German companies in Russia reached 21.7 billion dollars. At the same time, 55% of German companies that operated in Russia before the invasion have still not left the Russian market.