Hundreds of German Companies Pay Billions in Taxes to Russia Despite Sanctions

Despite three years of full-scale war by Russia against Ukraine and numerous sanctions, 248 German companies continue to operate in the Russian market. They exploit existing loopholes in legislation that allow them to circumvent bans and remain in Russia.

This is reported by AgroReview

Billions in Revenue for the Russian Budget

Foreign companies that have not exited the Russian market paid over 20 billion dollars in taxes last year alone. The total amount of tax contributions since the onset of large-scale aggression has already exceeded 60 billion dollars, which accounts for nearly half of Russia’s military budget for 2025. In particular, German companies contributed over 500 million dollars in corporate tax. Annual tax revenues from them are estimated at 1.7 to 2 billion dollars.

“For 2 billion dollars, Russia can acquire about 10,000 Shahed strike drones.”

German Business in Russia: Impact and Risks

Germany ranks second after the United States in terms of tax payments to Russia. Among the remaining companies, a significant portion specializes in the production of consumer goods, including cheese (Hochland) and building materials (Knauf). Although they do not formally violate EU sanctions, their presence in the Russian market contributes to filling the Russian budget, strengthening the industrial and technological capabilities of the aggressor country, and may also become a component of its war machine.

The total turnover of German companies in Russia for 2024 amounted to about 21.7 billion dollars. Meanwhile, 55% of German companies that operated in Russia before the full-scale invasion have not yet left the country and continue their activities.