Crime and Punishment

by Olha Povaliaieva
Friday, April 29, 2022
Crime and Punishment

Companies that do not leave the Russian market and continue to operate in Ukraine will be advertised and subject to additional tax

Bonuses for those who like to sponsor a war. A draft law has been registered in the parliament of Ukraine, describing the procedure for doing business for those international companies that have not ceased their activities in Russia. The bill applies at least to companies such as Nestle, Coca-Cola, American Pringles, Spanish Chupa Chups, German concern BSH (Bosch & Siemens), Bayer, D-Basf, British Tesco, French-Turkish LC Waikiki, French Credit Agricole, BNP Paribas, Leroy Merlin, Auchan, Austrian Raiffeisen Bank and Toshiba.

New working conditions in Ukraine for such companies:

  • The rates of taxes on corporate income, environmental tax, rent and property tax are increased by 1.5 times;
  • The obligation to inform Ukraine about the parent company maintaining economic ties with the aggressor state;
  • The list of these companies will be publicly available on the website of the State Tax Service
  • The bill complies with OECD standards, so Ukraine calls on other states to take similar measures.

It is noteworthy that many Ukrainian trading networks in Ukraine have already refused to sell goods produced by companies sponsoring the war against Ukraine. For example, you can no longer find Coca-Cola on the shelves of Ukrainian stores. Also, Ukrainians independently refuse the services of banks that continue to work in Russia, do not use services and do not buy goods whose parent companies do not see the need to stop their activities in the terrorist country.

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