Despite the prolonged war of Russia against Ukraine, the sanctions imposed, and numerous statements about exiting the Russian market, 248 German companies continue to operate in the Russian Federation, exploiting loopholes in the existing restrictions. The presence of these enterprises allows the aggressor to maintain significant budget revenues even during a full-scale war.
This is reported by Business • Media
Billions in Tax Revenues for Russia
As of the end of 2024, foreign companies that have remained operational in Russia paid over 20 billion dollars in taxes to the country’s budget. In total, since the beginning of the large-scale war, these revenues have exceeded 60 billion dollars, which accounts for nearly half of Russia’s military budget for 2025. At the same time, it is the German companies that have provided over 500 million dollars in income tax, with total annual tax payments estimated at 1.7 to 2 billion dollars.
“For $2 billion, Russia can purchase about 10,000 Shahed strike drones.”
Experts emphasize that such financial revenues significantly enhance Russia’s capabilities to procure weapons and sustain its aggressive policy, despite the sanctions in place. Specifically, for 2 billion dollars, Russia is capable of acquiring around 10,000 Shahed strike drones, which are actively used against Ukraine.
German Companies Among Leaders in the Russian Market
Germany ranks second after the United States in terms of tax contributions in Russia. Among the German companies that have remained in the Russian market are well-known consumer goods manufacturers, including Hochland (cheese) and Knauf (gypsum). Formally, these enterprises do not violate the EU’s sanction requirements; however, their activities not only fill Russia’s budget but also contribute to strengthening the industrial chains and technological capabilities of the aggressor, increasing the risk of involvement in Russia’s war machine.
In 2024, the total turnover of German companies in Russia amounted to approximately 21.7 billion dollars. At the same time, over half (55%) of German enterprises that operated in Russia before the onset of full-scale aggression have still not left the Russian market.