Banks boost Putin's war chest: £830m in taxes from international giants
4 May 2024 06:54
According to the French newspaper Le Monde on Friday, 21 major international banks are conducting business in Russia, with one highlighted on the Central Bank of Russia's list of "systemically important enterprises." These banks contributed nearly a billion euros in taxes to Vladimir Putin's country last year.
"Le Monde" references a report from the Kyiv School of Economics, revealing that after the Russian invasion of Ukraine began, 21 international banks continued their operations in Russia. These institutions are still profitable there - in 2023, they earned about £3 billion - and by paying taxes in Russia, they help finance Vladimir Putin's regime in its war against Ukraine. Last year, they added around £830 million to the Russian budget.
The Russian market still accommodates giants such as American Citibank and Italian UniCredit, alongside smaller entities like Austrian Raiffeisen and Hungarian OTP, "Le Monde" reports. The significance of Raiffeisen in the Russian market is underscored by its classification as a "systemically important enterprise" by the Central Bank of Russia, the newspaper notes. In 2023, the bank's revenue in Russia was roughly £2.2 billion, constituting 52 per cent of its overall profits.
Afraid of losses?
Raiffeisen's management is reportedly exploring options to exit the Russian market, yet - as assessed by "Le Monde" - they are hesitant to face the potential losses. When the French bank Societe Generale exited Russia, it encountered a loss of approximately £2.6 billion.
In December 2023, following Ukraine's decision to remove Raiffeisen from the "war sponsors" list, Austria lifted its veto on the 12th package of European Union sanctions aimed at Russia.
The "war sponsors" list is overseen by the National Agency for Prevention of Corruption, a pivotal Ukrainian institution established in 2015 to develop and execute national anti-corruption policies. The list identifies foreign companies that continue their operations in Russia despite its aggression towards Ukraine.
