How Western companies continue to support Russia’s war machine

In a recent article for Foreign Policy, the author describes their experience with Columbia University Press and the sale of their book’s translation rights to a Russian firm, despite their clear opposition to supporting the Kremlin.

The author initially informed the publisher that they did not want their work contributing to the Russian war effort in Ukraine, but was dismayed to discover that the book had still been published in Russia. The situation highlights the complex moral and economic dilemmas surrounding Western companies doing business in Russia.

Despite Western sanctions, some multinational companies continue operating in Russia, contributing significant revenues to the Russian state, which helps fund its military activities. Around 800 companies, including many from Germany, the United States, and France, still maintain a presence in Russia. These firms justify their operations by claiming humanitarian motives, such as the need to provide critical goods or ensure the welfare of their employees. However, these arguments are largely debunked, as Russia is self-sufficient in food production and has ample labour force to fill job vacancies.

The numbers speak for themselves. Western firms generated over $370 billion in revenues in Russia in 2022 and 2023 alone, a sum that exceeds Russia's military budget. This money is funnelled into Russian state coffers, with estimates suggesting that over $16 billion has been paid in corporate taxes since the war began. For comparison, this is equivalent to the cost of thousands of missiles or drones used in Russia’s attacks on Ukraine. Furthermore, the continued presence of Western companies in Russia serves as propaganda for the Kremlin, reinforcing the idea that the Russian market is too valuable for foreign firms to abandon.

While some companies eventually exited Russia, many had prioritized economic gain over ethical concerns, hoping that remaining in Russia would provide a competitive advantage once sanctions were lifted. However, the reality has proven to be far different. The Kremlin has seized control of many Western companies’ Russian assets, and the conditions for selling or repatriating profits are increasingly stringent, with significant losses for those trying to exit.

In light of this, the author redirected their book’s proceeds to support Ukraine, contributing to its military and humanitarian efforts. This decision reflects a growing recognition of the moral and economic imperatives for companies to reconsider their operations in Russia, especially as the situation worsens.

By Vugar Khalilov