Since the full-scale invasion of Ukraine began on February 24, over 80 Dutch companies are still paying taxes, indirectly funding Russia’s military budget with their corporate taxes, according to B4Ukraine coalition and KSE Institute.
Only 6 Dutch companies have fully pulled out of Russia.
In 2021 92 Dutch companies (with share in capital 50+%) provided jobs for 29,800 people, those companies generated $5.0 bn in annual revenue, paid $220 mn of taxes, had $2.9 bn in capital and $4.2 bn in assets.
KPMG, Prosus, Home Credit, SPAR, Nutreco, Brunel International are the six Dutch corporations that made a clean break from Russia.
There are 30 companies, including Heineken, VEON, and Bellona which have announced plans to leave the Russian market but have not followed through on their commitment to withdraw.
FMCG, Alcohol & Tobacco and Electronics sectors are the most reluctant to pull out of the Russian market. 24 companies, including GasTerra, LyondellBasell, DP Eurasia (which manages the Domino’s Pizza brand) have limited their activities, but keep operating in Russia, continuing to maintain, albeit indirectly, the country’s war-fighting capabilities.
Remainers include brewing group Swinkels Family Brewers/Bavaria, courier delivery services company TNT and 30 other Dutch businesses.
On November 25, the House of Representatives of the Netherlands declared Russia a state sponsor of terrorism, citing the war in Ukraine. As of November 18, The Netherlands has already spent €800 million solely on military assistance for Ukraine.
Overall, more than 1,600 international companies are still operating in Russia, generating at least $171 billion of local revenue annually, approximately 10% of Russia’s GDP. They pay enough taxes to fund 50 percent of Russia’s military budget.
We, the members of B4Ukraine coalition, firmly believe: businesses that contribute to Russia’s war by paying taxes and supplying resources to Russia must leave now or be held to account. The closing bell on responsible corporate behavior in Russia is set to ring on February 24, 2023. It’s the last chance to save the reputation, avoid legal risks and do the right thing.