According to a recent report by the British newspaper Financial Times, Western banks operating in Russia paid significantly more taxes in 2023 compared to before the war in 2021. The largest European banks operating in Russia, including Raiffeisen Bank International, Unicredit, Intesa Sanpaolo, ING, Commerzbank, Deutsche Bank, and OTP, paid a total of 800 million euros in taxes last year, compared to just 200 million euros before the conflict began. This represents around 0.4 percent of Russia’s budget for the year excluding taxes on oil and gas trade.
The increase in taxes paid by these banks was attributed to their improved financial results, with combined profits exceeding three billion euros in 2023 – triple the amount recorded in 2021. Despite facing economic sanctions on Russian banks and high interest rates, Western banks have found great appeal among Russian customers due to their ability to offer better services than Russian banks.
Raiffeisen Bank International stands out as the largest Western bank operating in Russia and contributed significantly to the total taxes paid by European banks last year. The bank has enjoyed significant success in Russia and its profits have exceeded 1.8 billion euros – over half of the total taxes paid by European banks in the country. However, despite its success Raiffeisen has expressed intentions to scale back its operations in Russia.
Overall, it is clear that Western banks are benefiting from their presence in Russia due to factors such as high interest rates and economic sanctions on Russian banks which have heightened their appeal among Russian customers.