In 2023, Western banks paid four times more taxes in Russia than they did before the war in 2021, according to a report by the British newspaper Financial Times. The seven largest European banks operating in Russia paid a total of €800 million in taxes last year, compared to €200 million before the conflict. This amount represents just 0.4% of Russia’s budget for the year, excluding taxes on oil and gas trade.
The European banks included in the report by FT are Raiffeisen Bank International, Unicredit, Intesa Sanpaolo, ING, Commerzbank, Deutsche Bank, and OTP. These are some of the largest European banks active in Russia today. However, there are also US banks still operating in the country.
The increase in taxes paid by these banks was attributed to their improved financial results, with combined profits exceeding €3 billion in 2023, three times higher than in 2021. Western banks operating in Russia benefit from high interest rates and economic sanctions on Russian banks that have heightened their appeal to Russian customers. Raiffeisen Bank International paid over half of the total taxes by European banks in Russia last year and had profits exceeding €1.8 billion euros. Despite its successes in Russia, Raiffeisen has expressed intentions to scale back its operations there.
In conclusion, the increase in taxes paid by Western banks operating in Russia 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 in Russia and contributed significantly to the total taxes paid by European banks last year, it is important to note that there are other large international banks still active there as well.