Several sanctions have been imposed after Russia's invasion of Ukraine last year. Since then, it became harder for "ordinary Russians" to buy certain goods and services they used to before the war. Products such as Mc Donalds food and drinks such as Coca-Cola. However, every time there are sanctions, there are loopholes and complications. 

For example, Cornetto ice creams are available in Russia because Unilever, its UK-based parent company, still operates in Russia. Companies like PepsiCo and Unilever have justified their decision to remain, highlighting humanitarian reasons and the importance of providing essentials to the Russian population. Despite all sanctions, there are estimations that global companies from the EU and the USA operating in Russia generated US$213.9 billion in 2022 revenues. 

The taxes from these revenues and employee contributions support Russia's budget, indirectly aiding the war effort. This presence also gives Russian citizens a sense of normalcy, which may inadvertently boost support for the Ukraine invasion.

However, there's concern that if some businesses exit Russia, the remaining companies may profit more due to reduced competition. Some argue for taxing these companies based on their Russian revenues. This would mean that if a company's home country doesn't tax its Russian sales, another country could do so. This system resembles the upcoming "Pillar 2" OECD tax strategy and the EU's Carbon Border Adjustment Mechanism. The intention is to make the war more challenging for Russia to maintain, using global tax and environmental tools to impose economic sanctions.

What do you think about the current situation? Should companies initiated in democratic countries but still operating in Russia be taxed with extra taxes? 

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