It is a bizarre reality. You walk down a street in Moscow in 2026, and while the "Golden Arches" are gone, the shelves are still packed with Oreo cookies, Pepsi, and Gillette razors. Despite years of headlines about "exodus" and "suspension," the data tells a much grittier story. US companies pay taxes Russia in amounts that would make your head spin—over $1.2 billion in profit taxes alone in a single recent fiscal year.
Honestly, it’s a mess. On one hand, you have the US government sending billions in aid to Ukraine. On the other, iconic American brands are cutting checks to the Russian Federal Tax Service. It feels like a glitch in the matrix, but for the CFOs of these multinationals, it's just a very expensive, very risky game of chess.
The billion-dollar bill: Who is still paying?
When the invasion started in 2022, there was a stampede. McDonald’s sold to a local licensee. Starbucks packed up. But hundreds of others stayed behind, "scaling back" or "pausing investments" while the registers kept ringing.
According to data compiled by the Kyiv School of Economics (KSE) and the B4Ukraine coalition, US-headquartered firms remain the largest foreign contributors of profit taxes to the Kremlin. We aren't just talking about pocket change. In 2023, the tally hit roughly $1.2 billion.
Look at the names at the top of the list. They aren't obscure industrial firms; they are the brands in your pantry.
- Philip Morris International: The tobacco giant reportedly led the pack, shelling out about $220 million in profit taxes.
- PepsiCo: Even after "suspending" Pepsi-Cola, they still paid around $135 million. They still sell "essential" goods like dairy and baby food, which, let's be real, is a massive part of their business there.
- Mars: The candy and pet food maker contributed roughly $99 million.
- Procter & Gamble: They chipped in about $67 million.
It's not just the big consumer goods players either. Financial and industrial firms like Citigroup and Cargill have also remained significant taxpayers, often citing the complexity of "unwinding" operations as the reason they can't just flip a switch and leave.
👉 See also: E-commerce Meaning: It Is Way More Than Just Buying Stuff on Amazon
Why don't they just leave?
You've probably asked this. I've asked this. If the PR is so bad, why stay?
Basically, the Russian government has turned the exit door into a trap. Since 2023, if a "hostile" country’s company (which includes the US) wants to sell its business and leave, they face a mandatory 15% exit tax.
But wait, it gets worse.
They also have to sell their assets at a 50% discount of the market value. Essentially, the Kremlin told Western CEOs: "You can leave, but we’re going to take half your stuff and then tax you on the way out." For a company like Pepsi, which has billions of dollars in infrastructure and decades of history in the region, that is a pill that's almost impossible for shareholders to swallow.
Then there’s the "essential goods" loophole. Many companies argue that they stay to provide food, medicine, and hygiene products to innocent civilians. While that sounds noble, critics like Mark Temnycky at the Atlantic Council argue that every ruble paid in VAT or payroll tax eventually funds the same thing: the state budget.
✨ Don't miss: Shangri-La Asia Interim Report 2024 PDF: What Most People Get Wrong
The 2025 tax hike: Raising the stakes
If 2024 was expensive, 2025 and 2026 are looking brutal. The Russian government recently overhauled its tax code to fund its "national defense" (read: the war).
The corporate profit tax rate has jumped from 20% to 25%.
Think about that for a second. American companies that haven't left are now effectively paying 25% of their Russian profits directly into a budget where nearly a third of all spending goes to the military. It’s an ethical nightmare for these brands. They are stuck between a rock (losing billions in assets to the Russian state) and a hard place (being labeled "corporate enablers" of a war).
The transparency problem
One of the weirdest trends we’ve seen lately is companies just... stopping their reporting.
Back in 2021, almost every major foreign firm in Russia published clear financial statements. By late 2024, that number had plummeted. According to B4Ukraine, of the 100 largest foreign firms, only about 43 still disclose their Russian financials openly.
🔗 Read more: Private Credit News Today: Why the Golden Age is Getting a Reality Check
They are hiding in plain sight. They want the revenue, but they don't want the "Top 10 Taxpayers" list appearing in a Newsweek article. It’s a strategy of silence, hoping the public focus shifts elsewhere.
What actually happens if they stay?
It isn't just about the money. Staying in Russia means playing by Russian rules. There have been reports of Western companies being forced to help with military mobilization efforts—essentially being told they have to help the state draft their own employees.
If they refuse? The state can seize the company. Just look at what happened to Danone and Carlsberg. Their Russian assets were essentially put under "temporary management" by the state. It’s a hostile environment, yet for some US companies, the Russian market is still too profitable to abandon.
Actionable insights for the conscious observer
So, what do you do with this information? Most of us feel powerless against multi-billion-dollar tax payments, but there are ways to track what's happening.
- Use the "Leave Russia" App: Created by the KSE Institute, this lets you scan barcodes to see if a company is still operating in Russia or has fully withdrawn.
- Monitor ESG Reports: If you own stock in these companies, look at their Environmental, Social, and Governance (ESG) filings. See how they justify their Russian presence to shareholders.
- Support Direct Aid: If the "tax-loophole" bothers you, the most direct counter-balance is supporting organizations like United24 or the Red Cross that work on the ground in Ukraine.
- Demand Policy Changes: Groups like the B4Ukraine coalition are pushing for G7 governments to close the loopholes that allow these companies to continue business-as-usual while their home countries impose sanctions.
The situation with US companies pay taxes Russia is far from over. As the Russian budget grows more reliant on corporate revenue to sustain its military, the pressure on these brands will only intensify. Staying isn't just a business decision anymore—it’s a geopolitical statement.
The real cost of staying
When we talk about $1.2 billion in taxes, it’s easy to get lost in the numbers. But $1.2 billion is enough to fund hundreds of thousands of military contracts at the current Russian recruitment rates. That is the "human quality" cost that no annual report can quite scrub clean. Whether these companies eventually leave or continue to navigate the Kremlin's maze, the paper trail of their tax payments remains one of the most controversial chapters in modern corporate history.
Next Steps for You: Check the "Leave Russia" database for your most-used household brands. You might be surprised to see which ones are still actively paying into the Russian state budget while the rest of the world watches.