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Article

21 Nov 2022

Author:
Business4Ukraine Coalition

Russia: More than 600 US companies still pay taxes, only 28 have fully pulled out, research shows

631 American companies still pay taxes in Russia, 21 November 2022

Since the full-scale invasion of Ukraine began on February 24, 631 US companies are still paying taxes, indirectly funding Russia’s military budget with their corporate taxes, according to B4Ukraine coalition and KSE Institute. Only 28 American companies have fully pulled out of Russia.

In 2021, American companies provided jobs for 410,700 people in Russia and generated $67.8 bn in annual revenue. These companies controlled $51.5 bn in capital and $31.1 bn in assets.

Overall, more than 1,600 international companies are still operating in Russia, generating at least $171 billion of local revenue annually, approximately 10% of Russia’s GDP...

Halliburton, PPG, Koch Industries, McDonald’s, and Starbucks are among the 28 American corporations that made a clean break from Russia. Just days ago they were joined by aluminum products maker Arconic...

There are 334 companies, including Paramount, Sony Pictures Entertainment, Universal Pictures, CNN, alcoholic beverages company Beam Suntory, and aluminum company Alcoa, which have announced plans to leave the Russian market but have not followed through on their commitment to leave.

Media and entertainment, alcohol and tobacco, and metals & mining sectors are the most reluctant to leave the Russian market. 145 companies, including Phillip Morris and Pyxus, have limited their activities, but remain active in Russia, continuing to fill the country’s war chest.

Remainers include law firm Baker McKenzie, media company Forbes and 150 other US companies.

...B4Ukraine calls on the US brands to put humanitarian values before profit and leave Russia. Businesses must fully exit Russia, relocate production sites from the country, stop paying payroll and corporate taxes, and stop trade with Russia altogether to deprive its war machine of economic and financial resources until the territorial integrity of Ukraine is restored and accountability is imposed for war crimes and the destruction of Ukrainian infrastructure and property.