American companies pay over $1 billion in taxes to Russia, according to Newsweek.

U.S. companies that continue to operate in Russia have contributed over $1 billion in tax revenues to the Kremlin. Among these are well-known brands.

This information is reported by RBK-Ukraine referencing Newsweek.

According to data provided to the publication by the B4Ukraine group and the Kyiv School of Economics (KSE), American firms in Russia paid the country $1.2 billion in profit tax in 2023. This tax contribution makes the U.S. the largest supplier of foreign profit taxes to Russia.

Following Russia's full-scale invasion of Ukraine on February 24, 2022, companies from around the world left the Russian Federation to express their moral disapproval and exert economic pressure on the regime of Russian dictator Vladimir Putin.

However, many chose to stay. According to estimates from the Yale School of Management's Center for Executive Leadership (CELI), 123 large American companies continue to do business with Russia. KSE data, which also accounts for small and medium-sized enterprises, estimates that about 328 American companies remain in the RF.

Thus, according to a new study, the top ten companies that paid the most profit tax to Russia in 2023 include:

• tobacco company Philip Morris International ($220 million);
• beverage manufacturer PepsiCo ($135 million);
• confectionery company Mars ($99 million);
• health and hygiene products manufacturer Procter & Gamble ($67 million);
• confectionery company Mondelez ($62 million);
• investment bank Citigroup ($53 million);
• agricultural company Cargill ($50 million);
• pharmaceutical company Johnson & Johnson ($42 million);
• independent non-alcoholic beverage producer Coca-Cola Hellenic ($34 million);
• oil service company Weatherford ($32 million).

Newsweek also added some facts. In particular, Coca-Cola has stopped selling its beverages in Russia, but the regional manufacturer, Coca-Cola Hellenic, sells a product named Dobry Cola through Multon Partners. Coca-Cola owns 21 percent of Coca-Cola Hellenic's shares. It was also recently revealed that Coca-Cola applied for the re-registration of its trademarks in Russia in April 2024.

Meanwhile, according to the companies, PepsiCo, Mars, Procter & Gamble (P&G), Cargill, and Weatherford have reduced their operations but continue to produce goods and conduct operations they deem necessary.

As a reminder, we recently reported that wealthy Russians have found ways to circumvent Western sanctions to acquire luxury items. They do this through intermediaries, resellers, and smugglers.

For more on how luxury brand products reach Russians, read in RBK-Ukraine's article.