Three years after Russia’s full-scale invasion of Ukraine, 248 German companies continue operating in Russia, paying the Kremlin up to $2 billion annually in taxes, according to Euronews. The report highlights that most of these firms are consumer goods producers such as Hochland and Knauf, which remain active on the Russian market despite the ongoing war.
Billions flowing into Russia’s wartime budget
Research by the Kyiv School of Economics (KSE), B4Ukraine, and Squeezing Putin found that foreign companies collectively paid at least $20 billion in Russian taxes in 2024 alone — with total contributions since 2022 exceeding $60 billion. That sum could fund over a million Russian contract soldiers and amounts to nearly half of Moscow’s 2025 military budget of $145 billion, according to the International Institute for Strategic Studies (IISS). German firms are the second-largest contributors after U.S. companies, which paid $1.2 billion in profit taxes in 2024, compared to $594 million from German firms.
German business presence remains significant
Despite international pressure, around 1,400 German companies were still active in Russia as of October 2025, Bildreported. Only 135 have announced partial or total withdrawal, and just 74 have fully exited by selling or liquidating their operations. Globally, just 12% of foreign firms have fully left the Russian market since 2022, while more than half continue doing business there.
Ethical and security concerns over continued operations
The $2 billion in annual taxes paid by German companies could theoretically finance around 10,000 Shahed-type attack drones, frequently used against Ukrainian cities and energy infrastructure. Critics argue that while such operations may not breach EU law — since many sectors are not formally sanctioned — they economically sustain Russia’s war machine. Experts call for closing this legal loophole to prevent European business taxes from indirectly funding the war.
Growing calls for accountability
Many companies justify their presence in Russia by citing “social responsibility” toward local employees and consumers, but observers say such reasoning appears cynical amid an ongoing invasion. Analysts warn that doing business in a state waging hybrid warfare against Germany — through cyberattacks, disinformation, and drone strikes — is not only morally questionable but strategically risky. With the Kremlin seizing Western assets under “temporary management,” foreign investors face rising exposure and legal uncertainty. Human rights groups and civic activists urge public pressureon companies that remain, arguing only sustained scrutiny from media, civil society, and governments can force a shift toward ethical disengagement.
