14.02.2023 14:26

Only 9% of almost 1,500 global companies leave Russian market - Podolyak

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14.02.2023 14:26

A mere 9% of almost 1,500 global companies have left the Russian market since the full-scale invasion.

That’s according to Mykhailo Podolyak, an advisor to the head of the President's Office, Ukrinform reports.

"Almost a year into the start of war. And only 9% of almost 1,500 global companies left the Russian market... Among the Western firms that remained working in Russia, the largest shares belong to German (19.5%), 12.4% - American, and 7% - Japanese," said Podolyak.

In particular, the following companies retained operations in the terrorist state: METRO, Leroy Merlin, Auchan, Nestle, Unilever, Procter & Gamble, Siemens, Pfizer, Philip Morris, Bayer, Acer, Alibaba, CloudFlare, Societe Generale, Credit Suisse, Lenovo, Asus, Cersanit etc.

Podoliak also reported that some Western banks have seen surplus profits in Russia over the year of the full-scale war.

"Raiffeisen increased its profit in Russia by 313%. For 2022, the profit of the Russian branch amounted to EUR 474 million, which is the largest amount among the branches in South-Eastern Europe. Corporate income tax in Russia is 20%. So, during the last fiscal year, Raiffeisen replenished Russia’s coffers by EUR 94.8 million with this tax alone. The amount of other fees is much higher. In other words, this is a tax on the war, on the killing of Ukrainians," said the advisor.

Moreover, Raiffeisen recognized the "l(d)nr" pseudo-republic, offering a credit holiday to the mobilized soldiers. This example was followed by Citibank, Credit Europe Bank, and OTP Bank.

Podolyak also recalled that recently the national anti-corruption watchdog recognized a U.S.-based corporation as an international sponsor of war. The company owns such subsidiaries and brands as Gillette, Fairy, Tide, Ariel, Lenor, Mr. Proper, Pampers, Always, Head & Shoulders, Pantene, Old Spice, Hugo Boss, Max Factor, etc.

"Not only did they not leave the Russian market, they also continue to operate a household chemicals factory, which is the world's largest producer of detergents for P&G, as well as a factory for the production of blades and razors for Gillette," he noted.

The adviser to the head of the Presidential Office noted that, while operating in the Russian Federation, international companies pay taxes to Russia’s budget, and these funds are therefore used to manufacture defense products.

The total annual turnover of these 1,200+ companies in Russia stands at almost $290 billion. This is a fifth of Russia’s GDP.

"In addition, companies also contribute to mobilization efforts. According to the new legislation in Russia, corporations operating in the country are forced to contribute to the recruitment of their staffers into the army and to finance their military gear. Failing to pull out of the Russian market throughout the year of full-scale war is no accident but a deliberate position," Podolyak stressed.

According to him, the level of corruption in the Russian Federation should also be kept in mind. "Each business directly fills the pockets of Putin and his entourage – the masterminds of the war of aggression in the center of Europe. Passive inaction is also a crime. By replenishing the Russian budget with billions of dollars, they are preventing a quick and proper end to the war," Podolyak added.

He also emphasized that the only possible way to end the war is the absolute defeat of Russia, a tribunal for the top leadership and military command, and reparations for Ukraine.

"And the collective West, whose market for international corporations is a higher priority than the Russian Federation, should show a tough position. In the end, each actor in this party must decide whether to declare values on paper or to act. Silence kills. Literally," said Podolyak.

One week ago, on February 8, First Deputy Prime Minister, Minister of Economy Yulia Svyrydenko,and adviser to the head of the President's Office Vladyslav Vlasiuk held a meeting with G7 ambassadors on the issue of strengthening sanctions against Russia.

IC UAC according to Ukrinform

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