German companies have paid nearly €1.72 billion in taxes to Russia since the beginning of the conflict in Ukraine, according to a report by the Kyiv School of Economics (KSE), B4Ukraine, and the Squeezing Putin Initiative. Some 250 German firms remain active in Russia, many producing fast-moving consumer goods such as dairy and building materials.
Hochland, for example, operates three plants in Russia: in the Moscow region, Prokhovka in Belgorod, and Belinski in the Penza region, in addition to multiple sites across Europe. The company reported a significant drop in profitability in 2024 but has no current plans to sell its Russian operations. Exiting the market has become more complex, as Russia increased taxes on business sales from 15% to 35%, raised the required discount on asset sales from 50% to 60%, and now requires presidential approval for transactions above 50 billion rubles (around €533 million).
Nezir Sinani, director of B4Ukraine, said: “These foreign companies are clearly continuing to contribute to the Russian economy.” According to the report, international firms paid over $60 billion (€51.8 billion) in taxes to Russia since early 2022, with German companies among the largest contributors after U.S. firms.
At the same time, Russia has recently conducted a nuclear-powered underwater drone test, known as Poseidon. The system is designed to operate at depths exceeding one kilometre and travel at over 70 knots. President Vladimir Putin announced this as the country’s second trial of a new nuclear weapons system in less than a week.
