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German Firms Accused of Funding Russia’s War Through Billions in Tax Payments
German companies have paid nearly $2 billion (€1.72 billion) in taxes to Russia since the start of Moscow’s full-scale invasion of Ukraine, effectively bolstering the Kremlin’s war finances, according to a new report by the Kyiv School of Economics (KSE) in cooperation with B4Ukraine and the Squeezing Putin Initiative.
The report estimates that international companies operating in Russia paid at least $20 billion (€17.2 billion) in taxes to the Russian government in 2024 alone, with German businesses ranking among the largest contributors. Between 2022 and 2024, their total payments are believed to have reached around $2 billion annually.
More than half of the roughly 250 German firms that were active in Russia before the war remain in the country today, despite mounting criticism. While many, such as cheese maker Hochland and construction materials producer Knauf, are not violating EU sanctions, campaigners argue that their continued operations indirectly fund Russia’s war effort.
“Companies support Russia’s war economy through the taxes they pay,” said Nezir Sinani, director of B4Ukraine, a coalition of civil society groups pushing to block economic support for Moscow. “By remaining in Russia, they are complicit in its war of aggression.”
KSE’s data suggests that the total tax revenue paid by foreign firms to Russia since February 2022 exceeds $60 billion (€51.8 billion) — equivalent to almost half of Russia’s 2025 defense budget.
Despite the growing backlash, many German firms say leaving Russia is not a simple decision. Hochland, which operates three plants in Russia, told Euronews that it remains committed to its 1,800 local employees and “strongly condemns” the war, but warned that withdrawal could ultimately benefit the Russian state.
Knauf, one of Russia’s largest foreign construction suppliers, has also faced criticism after reports linked its materials to reconstruction projects in occupied Mariupol. The company denied any cooperation with Russian authorities or military-linked contractors, saying it sells only to independent retailers. Knauf said it plans to leave the Russian market but that earlier negotiations with a buyer had failed.
Exiting Russia has become increasingly costly. Moscow raised taxes on foreign asset sales from 15% to 35% and increased mandatory discounts to 60%, with major sales now requiring President Vladimir Putin’s personal approval.
Sinani argues that such hurdles should not deter companies from leaving. “The number of German firms still operating in Russia is unjustifiably high,” he said. “The cost of staying is measured not in euros, but in human lives. Companies should hand over the keys and leave immediately.”
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Investigation Underway After Goa Nightclub Fire Kills at Least 25
Authorities in the Indian state of Goa have opened an investigation into a nightclub fire that killed at least 25 people, including several tourists, in one of the region’s most popular party districts. Six others were injured in the blaze, which broke out shortly after midnight in Arpora, a nightlife hub about 25 kilometres from the state capital, Panaji.
Goa Chief Minister Pramod Sawant confirmed the death toll in a statement posted on X, saying the victims included many of the club’s kitchen staff and a small number of visiting tourists. He added that all the injured were in stable condition and receiving medical treatment. Rescue teams recovered all bodies from the site.
Early reports from local police, cited by the Press Trust of India, indicated that a gas cylinder explosion triggered the fire. Witnesses, however, told the agency that the blaze appeared to start on the club’s first floor, where nearly 100 tourists were dancing at the time. As smoke and flames swept through the building, many people ran toward the lower floor, where they became trapped along with staff members.
Sawant said a formal inquiry would determine the exact cause and whether the club complied with fire safety regulations. He pledged strict action against anyone found responsible, writing on X that any negligence uncovered by investigators would be “dealt with firmly”.
Eyewitnesses described scenes of panic as patrons attempted to flee the burning building. “We rushed out of the club only to see that the entire structure was up in flames,” said Fatima Shaikh, who was inside when the fire began.
Prime Minister Narendra Modi offered condolences in a message on X, calling the incident “deeply saddening” and wishing the injured a swift recovery.
Local media reported that the club’s location along the Arpora River backwaters posed challenges for emergency crews. A narrow approach road forced fire engines to park about 400 metres from the entrance, slowing their response. Reports also revealed that the building had previously received a demolition notice after officials found it lacked a construction permit. That order was later withdrawn by senior state authorities, according to Arpora councillor Roshan Redkar.
Incidents involving gas cylinders and electrical faults are not unusual in India and often lead to heavy casualties, prompting renewed calls for stronger enforcement of safety standards. Opposition leader Rahul Gandhi criticised the tragedy as a “criminal failure of safety and governance” and urged a transparent investigation to establish accountability and prevent future disasters.
The probe into the fire is expected to assess structural safety, emergency exits and compliance with existing regulations as authorities work to piece together how the late-night gathering turned into one of the deadliest incidents in the state in recent years.
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