Swiss-based firms active in Russia are ‘filling Putin’s war chest’

The food and beverage giant Nestlé is among the Swiss-based companies that continue to do business in Russia, according to a list drawn up by the NGO B4Ukraine and the Kiev School of Economics. © Keystone / Laurent Gillieron

Swiss companies that continue to do business and pay millions in taxes in Russia are helping to fund Moscow’s war in Ukraine, the NGO B4Ukraine alleges.

Switzerland ranks third in terms of foreign countries with businesses still active in Russia, according to a study by B4Ukraine and the Kiev School of Economics, the German-language weekly Sonntagsblick reveals. Citing a report by FAZ business magazine, the paper said companies from the Alpine nation recorded $14.3 billion (CHF12.7 billion) in sales, behind United States firms ($40 billion) and German corporations ($23.2 billion).

This means that Swiss companies paid $275 million in taxes to the Russian state last year, says B4Ukraine, which is backed by pro-Ukrainian organisations.

+ Why western companies still can’t quit Russia

“Swiss corporations are filling [Russian President Vladimir] Putin’s war chest,” Irina Pavlova, who works for the NGO, told Sonntagsblick. The more companies leave Russia, the more pressure Putin will feel, she added.

B4Ukraine estimates that 77 companies with headquarters in Switzerland remain active in Russia, including Japan Tobacco International (JTI), commodities trader Glencore, pharma giant Novartis and agri-firm Syngenta. A list seen by the newspaper also features pharma multinational Roche, chocolate manufacturer Barry Callebaut, Nestlé and Ems Chemie.

JTI estimated that it made around $2 billion in sales in Russia in 2022 and told Sonntagsblick its business in Russia accounted for 11% of global sales. Glencore, on the other hand, insisted it had “no operational presence” in Russia but wants to “meet legal obligations under pre-existing contracts.”

+ Only 18 Swiss firms have completely exited Russia

Jeffrey Sonnenfeld, a Yale University professor who has kept a list of international companies active in Russia since the outbreak of war, said the data cited by the NGO may contain errors. Nevertheless, he added, “their presence fuels Putin’s war machine” and the companies should leave Russia to put pressure on Moscow to end its war.