German companies have paid nearly €1.72 billion in taxes to the Kremlin since Russia's invasion of Ukraine — enough to fund 10,000 attack drones targeting Ukrainian cities — yet more than half of German firms that operated in Russia before the all-out war remain there today, according to a new report.

Legally, some 250 German companies still active in Russia are doing nothing wrong. Many of these firms, such as the cheese manufacturer Hochland and the gypsum producer Knauf which produce fast-moving consumer goods are, in principle, not in violation of EU regulations.

Yet, the critics believe that contributing to the Kremlin's war chest is an issue that must be addressed.

“Companies support Russia’s war economy through the taxes they pay,” said Nezir Sinani, director of B4Ukraine, a global coalition of civil society organisations seeking to block access to the economic resources behind Russia’s aggression.

By remaining in the country, he argues, they are directly contributing to the Russian economy, meaning they are also implicated in Russia’s war of aggression.

People walk in the rain through Red Square in Moscow, 17 October, 2025 AP Photo

“These foreign companies are clearly continuing to contribute to the Russian economy and thereby supporting the war,” said Sinani.

“This is a loophole that must be closed,” he emphasised.

According to a report by the Kyiv School of Economics (KSE), B4Ukraine and the Squeezing Putin Initiative, international companies still operating in Russia paid at least $20 billion (€17.2bn) in taxes to the Russian state in 2024 alone.