Profits first, ethics second: Foreign corporations financing Russian imperialism’s war of aggression

A report just released by three Ukrainian organisations has revealed the foreign corporations whose taxes on earnings in Russia are helping to fund Russian imperialism’s war of aggression against Ukraine.

Non-Russian companies are contributing to Russia’s war on Ukraine through the taxes they pay, the supply chains they support and the technology and training they provide. This report focuses on one specific angle: multinational company revenue and taxes associated with operations within Russia.

The Report found that in 2023, 1600 multinational corporations played a pivotal role in strengthening Russia’s economy, contributing to its illegal war of aggression in Ukraine.  They paid an estimated $21.6 billion in total tax, bringing the total estimated taxes paid to $41.6 billion since the full-scale invasion in 2022. $41.6 billion is equivalent to just under one-third of Russia’s estimated military budget for 2025,

According to the Report, banks were the largest contributors to Russian tax revenue. Austria’s Raiffeisen Bank International (RBI), in particular, was found to be the largest single corporate taxpayer in Russia by far in 2023. RBI’s Russian tax contributions in 2023 totalled $491m - more than twice those of the second-largest corporate taxpayer, China’s Chery Automobile, and more than the tax contributions of all other international banks put together.

On a country basis, American firms generated the largest total revenues in Russia and emerged as the Kremlin’s most substantial contributors through profit taxes, paying $1.2 billion in 2023. Germany follows, with its companies paying $692.5 million in profit taxes to Russia in the same year.

Although many foreign corporations pulled out of Russia following its invasion of Ukraine, Chinese companies moved to capture market share and boost revenues, particularly in the automotive and technology sectors. Yet despite gains in these areas, it is still companies headquartered in G7 and EU countries who were cumulatively the highest profit taxpayers in Russia in 2023, representing 16 of the top 20 contributing countries. Companies from China - which is considered as a ‘friendly’ country by Russia - reported higher revenues than those from Germany, but their profit tax contributions remain lower.

Chinese companies in the Top 20 List of foreign tax-paying corporations in Russia were Chery Automobile, the Industrial and Commercial Bank of China, and Haval Motor. Together their tax on profits in 2023 amounted to $328m, still lower than the Austrian bank’s payments.

China’s 3 companies in the Top 20 compared with 8 from the US.

Revelations of US, European and Chinese firms supporting Russian aggression through their taxes on profits in Russia are a stark reminder of companies that invested in Nazi Germany and continued operating after the beginnings of Nazi aggression and the outbreak of World War 2.

They included Ford and General Motors, both owned by anti-semitic admirers of Hitler, Coca-Cola, IBM and IT&T. Ford factories and those of GM’s German subsidiary Opal, switched to war production after 1939. After the war, GM was compensated $32 million by the U.S. government because its German factories were bombed by U.S. forces during the war. A large sum was also paid to Ford, although the exact amount was never revealed, and despite the fact that slave labour from concentration camps was used at its Ford-Werke plant.

Imperialist finance capital, throughout its history, has always placed profits over ethics. It may be one thing for corporations to pay taxes to their “own” aggressor nation, but it is scaping the bottom of the barrel of ethics when they work with and support governments to which their own are opposed or actually fighting.

Greenland: The United States and its isolationist path

With the expansion of counter-hegemonic imperialist powers, Russia and most notably China, America is rapidly on the decline and racing to fascism as it tries to consolidate its position at the top of Imperialist domination especially against its enemies in the same market of exploitation.

On Tuesday, the 7th of January, with less than two weeks before taking office, Donald Trump has gone full mask off once again for American Imperialism in a press conference at Mar-a-Lago. Although this is not the only time Trump has been so honest about his, or rather the ruling class of America’s plan for the world, this press conference was especially isolationist and Imperialist in its rhetoric.

First off Trump declared military action will be used if necessary to take control of both Greenland and the Panama Canal. While doing this we learnt the one thing Trump knows about ex-president Jimmy Carter, in his words, “The Panama Canal is a disgrace, what took place at the Panama Canal. Jimmy Carter gave it to them (Panama) for $1, and they were supposed to treat us well. I thought it was a terrible thing to do,”. (1.) Along with this Trump also humbly declared that the Gulf of Mexico should be changed to the “Gulf of America”. (2.) it doesn’t end here though. Trump also repeatedly declared that America’s settler-colonial neighbour to the north, Canada, should become the 51st state of the United Settler-Colonial States of America! What a roll.

Now, let’s try and examine why Trump felt so compelled to go on an hour and a half rant that sounds like America reclaiming ‘Manifest Destiny’ from Germany for itself. While doing this we will also try to explain the historical conditions behind these decisions and the importance of the areas that America has their claws out for.

Greenland’s history, much like Australia’s, is very much a history of settler-colonialism. Greenland and its indigenous population the Inuit, made up of three major indigenous populations, have been subjected to colonialism and neo-colonialism by Denmark for centuries. Blaringly a showcase of this colonialism is that although being an autonomous part of Denmark rated 2nd for the happiest country in the world by the World Population Review (3.), Greenland has the world’s largest suicide rate. (4.) Outside of Denmark due to both its important geographical position and abundant resources Greenland has been at the grabs from keen-handed Imperialists the world over, most notably, America, Russia and China. The United States has had military presence in Greenland since WWII (5.) and has had Trump again earlier in 2019 trying to buy Greenland due to its importance. (6.) America trying to purchase Greenland has been consistent for decades, since even 1946. (7.) This is representative of the fact that Americas imperialist ambitions have been present and loud since long before Trump and that Trump is not the “great man” in Americas Imperialist past and future ambitions, Trump is merely the great puppet of the American capitalist ruling class.

The importance of Greenland geopolitically, as I mentioned previously, is not one sided and not lost on the minds of the other great Imperialist power, China. Chinas interest has been recent but nonetheless is clear with visits from Chinas Minister of Land and Resources to the purchasing of stock in Greenland Minerals and Energy which develops a Uranium and rare-earth site at Kuannersuisut (Kvanefjeld). (8.) Both the US and China have been competing by proxy through two Australian mining companies most notably Greenland Minerals Australia’s holding company and Ironbark in extracting many valuable resources from Greenland for the competing Imperialist powers. (9.) this case is quite similar to Chinas export of finance capital through Australian mining companies in Africa.

What is clear is why Greenland is so valued by the Imperialist powers. The problem is that it contains an indigenous population which does not wish to be dominated by Imperialism. The Inuit have not had the right of self-determination of their own country and have had to suffer the subjugation of colonial powers for hundreds of years. America, China and not even Denmark have the right to determine who controls Greenland, this right belongs to Greenland and its masses.

The posturing and absurdity of Donald Trump in his most recent press conference, let alone the history of imperialism and how It continues today, puts a clear cut through the idea and the relied upon verbiage from the ruling class of a rules-based order. There is no rules-based order, there is only Imperialism and its necessity for profit seeking abroad and the slicing up of the globe into outposts of Imperialism. There is only one rule, and it is profit. This is the inevitability of a capitalist society in its dying stages. The only solution is the scientific solution.

The only solution is the struggle of the world’s masses against Imperialism for Socialism and independence. Nothing else can bring humanity forward.

Sources –(1.) - Donald Trump Mar-a-Lago press conference. 7th January 2024.(2.) - Donald Trump Mar-a-Lago press conference. 7th January 2024.(3.) - Happiest Countries in the World 2024(4.) - Greenland Has The World's Highest Suicide Rate, And Teenage Boys Are Especially Vulnerable : Goats and Soda : NPR(5.) - Greenland, Denmark, and U.S. Relations(6.) - Greenland, Denmark, and U.S. Relations(7.) - Greenland: what is China doing there and why? | Presence before power(8.) -Greenland: what is China doing there and why? | Presence before power(9.) - Australia, China, and US in the Greenland Precious Metals Rush - Resource Erectors

Chinese aid to Cuba: Aid as imperialism is as old as imperialism itself

The UK-based and revisionist-backed Friends of Socialist China website headlined an article, "China donates 70 tons of equipment to help Cuba restore its electric system."

FOSC, run by Danny Haiphong and businessman Keith Bennett , would be better named Publicity Agents for Capitalist China. Nonetheless, their post could not hide that the gift was an example of a typical PRC ploy: negotiate a big commercial deal with a country, tack on a dollop of pure aid, and publicize the latter.

This tactic was used, for example, when Chinese companies exported COVID-19 vaccines during the pandemic. The donated first batch would arrive, and the Chinese side would arrange a publicity photo. The bulk of the deliveries on commercial terms would follow.

The FOSC post conceded, "The (Cuban) deputy minister also stated that the island government estimates that this donation will benefit about 53,200 homes in the country." The rest of the iceberg is hinted at: "The donations are part of agreements signed between Cuban President Miguel Díaz-Canel and his Chinese counterpart, Xi Jinping, seeking to expand cooperation in strategic initiatives such as energy, transportation, food security and trade."

Two months ago a news report had more about these "strategic initiatives."

Chinese company bullish on Cuban solar drive, executive says (excerpts)

Reuters, November 4, 2024

Havana - Hangzhou Duojia Technology, which distributes solar technology to Cuba, called a Cuban plan to dramatically boost solar generation a win for both countries, touting China's manufacturing heft and the island's sunny climate.

Qiaoming Huang, president of Hangzhou Duojia Technology, told Reuters in an interview that
his company, which sources solar technology from China for small-scale commercial projects of up to 20 kilowatts in Cuba, had 10 containers of solar panels and lithium batteries on their way from China.

Cuba agreed in April for China to help it boost solar power's role in its grid, though neither government elaborated on financing details. After the October nationwide blackout, Cuba's top leadership appeared to double down on the plan, at least partially financed with Chinese development credits, according to state-run media.

Note that HJT "sources solar technology for small commercial projects." The company is a trader, not manufacturer of solar panels nor lithium batteries. HJT's principal business is as a global distributor between "more than 3000 auto parts manufacturers" in China and retailers in 50 countries. It has a large warehouse in Hangzhou for spark plugs, steering wheel covers, etc.The company obviously wants to get into green energy distribution, hence the Cuba deal.

Any donation to Cuba to break the U.S. embargo is a good thing. But let's not fool ourselves that the PRC is ambiguous between socialist solidarity and capitalist commerce. It's 98% the latter – as, for example, 53,000 homes in ratio to perhaps three million Cuban households.

Link to Vanguard