In-depth study reveals how Western companies persisted in Russia after the start of Moscow’s military operation
A joint report from the Kiev School of Economics and the non-governmental organization B4Ukraine examines the persistence of Western business activity in Russia long after Moscow launched a military operation in Ukraine. The analysis suggests that a large share of foreign enterprises continued to operate in Russia, continuing to generate profits and contribute to the local tax base despite waves of sanctions and political pressure from Western governments.
Experts behind the study note that only a minority of foreign firms chose to withdraw from the Russian market in response to international restrictions. The majority—roughly 83 percent—stayed active, maintaining operations and paying taxes to the Russian federal budget. The report identifies 1,146 foreign companies that remained active in 2022, collectively recording revenues of about 177.2 billion dollars for the year.
It is also highlighted that domestic income tax receipts in 2022 were significantly influenced by the activities of corporations headquartered in major advanced economies. According to the findings, nearly a quarter of all income tax paid within that year came from companies with G7 origins, underlining the ongoing fiscal impact of Western-based businesses in Russia.
The situation unfolded after President Vladimir Putin publicly announced on February 24, 2022, that Russia would conduct a military operation in Ukraine. The directive prompted a new round of sanctions from the United States and its allies, reshaping the geopolitical and economic landscape surrounding Russia’s market access. Observers note that these sanctions accelerated regulatory and financial pressures while also triggering shifts in global supply chains and investment strategies across the region.
Commentary from former legal counsel for a prominent businessman at the time describes the broader consequences, including reputational and operational challenges faced by firms navigating the evolving sanctions regime. The synthesis of regulatory responses and corporate strategies continues to shape the decision-making calculus for international companies assessing risk and opportunity in Russia and neighboring markets.