New Report Reveals Western Banks Paid Four Times More Taxes in Russia in 2023 Than Before the War in 2021
According to a recent report by the British newspaper Financial Times, Western banks operating in Russia paid significantly more taxes last year than before the war in 2021. The largest Western banks operating in Russia paid four times more taxes in 2023 than they did before Russia’s attack on Ukraine, as reported by FT. Seven European banks paid a total of 800 million euros in taxes in Russia last year, compared to 200 million euros before the war in 2021. This amount represents 0.4 percent of Russia’s budget for the year, excluding taxes on oil and gas trade.
The increase in taxes paid by these banks was attributed to their improved financial results, with combined profits exceeding three billion euros in 2023, three times higher than in 2021. Despite their successes, some Western banks are considering scaling back their operations or leaving Russia altogether due to political instability and economic uncertainty.
Western banks operating in Russia benefit from the country’s high interest rates and economic sanctions on Russian banks, which have heightened the appeal of Western banks to Russian customers. Raiffeisen Bank International paid over half of the total taxes by European banks in Russia last year, with profits exceeding 1.8 billion euros. Despite its successes, Raiffeisen has expressed intentions to scale back its operations in Russia due to concerns about political risks and economic instability.
In conclusion, the increase in taxes paid by Western banks operating