Italian Companies Maintain Strong Presence in Russia Despite Western Sanctions

More than three years after the outbreak of war in Ukraine and sweeping Western sanctions against Moscow, Italian companies continue to play an active role in Russia — paying millions of euros in taxes to the Kremlin.

According to a Tuesday report by Euronews, cited by Journalistirani, Italian firms have collectively paid over one billion euros in taxes to Russia since the invasion of Ukraine in 2022.

Data from the Kyiv School of Economics’ “Leave Russia” initiative show that dozens of Italian businesses remain operational in Russia despite Western restrictions. The project, launched in 2022 to monitor the behavior of multinational corporations in Russia, classifies companies by country of origin, industry, and operational status.

€1 Billion in Taxes Since 2022
Project head Andrii Onopriienko told Euronews that Italian companies have paid around €346 million per year since the war began — totaling approximately €1.037 billion to date.

Official Russian tax data indicates that 146 Italian companies remain active in Russia. About 30 have announced plans to leave in the future, while around 70 others maintain legal registration but have not withdrawn from the Russian market.

U.S., Germany, and U.K. Lead in Active Companies
While Italy ranks among the European countries with the highest number of firms still doing business in Russia, Germany (459 companies) and the United Kingdom (over 290) maintain larger corporate footprints. The United States, with 810 companies, tops the list of foreign business presences inside Russia.

The “Grey Zone” of Business
Euronews notes that much of this continued activity takes place through “grey channels” — indirect or semi-legal trade routes that allow Western products to reach Russian consumers despite sanctions.

Carolina Stefano, professor of Russian history and politics at LUISS University in Rome, explained that “a grey area of commerce exists beyond the official data. These are companies that have formally left the Russian market but continue trading indirectly through third countries.”

She added that not all goods fall under sanction lists, enabling certain companies to continue fully legal trade with Moscow.

Difficult Exit, Costly Compliance
Leaving the Russian market, analysts say, has proven far more complicated and expensive than staying. According to IRNA, among 52 French companies that halted operations in Russia since February 2022, only 16 — including Renault — have completely withdrawn. Others face high costs and legal risks tied to Russia’s restrictive exit policies.

Since 2022, the Kremlin has introduced a complex legal framework that requires special government approval for any foreign company seeking to sell or transfer assets. Firms that obtain such approval must accept discounts of at least 60% on asset valuations and pay an “exit tax” now reaching up to 35% of the sale price.

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Source: Report by Iranian journalist Bahram Hassanzadeh — Journalist | journalistsir
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