British Newspaper Reveals Shocking Increase in Taxes Paid by Western Banks Operating in Russia Amid Sanctions

According to the British newspaper Financial Times, Western banks operating in Russia paid four times higher taxes in 2023 compared to before the war in 2021. Seven European banks paid a total of €800 million in taxes last year, excluding taxes on oil and gas trade, which is four times higher than before the war. The largest Western banks operating in Russia paid four times more taxes in 2023 than they did before Russia’s attack on Ukraine.

The European banks included in the summary by FT are Raiffeisen Bank International, Unicredit, Intesa Sanpaolo, ING, Commerzbank, Deutsche Bank, and OTP. These are the largest European banks operating in Russia but there are also US banks still active in the country. The increase in taxes paid by these banks was attributed to their improved financial results with combined profits exceeding €3 billion euros in 2023 which is three times higher than in 2021.

Western banks operating in Russia benefit from the country’s high interest rates and economic sanctions on Russian banks which have heightened the appeal of Western banks to Russian customers. Raiffeisen Bank International paid over half of the total taxes by European banks last year with profits exceeding €1.8 billion euros. Despite its success in Russia, Raiffeisen has expressed intentions to scale back its operations in the country due to growing regulatory risks and increasing political tensions between Russia and Europe.

In conclusion, the increase in taxes paid by Western banks reflects their improved financial performance driven by factors such as high interest rates and economic sanctions on Russian banks. While Raiffeisen stands out as the largest Western bank operating