Ukraine MPs back bill to boost taxes on foreign firms still working in Russia

Before it comes into force, the bill needs to be approved in a second reading and signed by President Volodymyr Zelenskiy, who has repeatedly called for all foreign firms to pull out of Russia to increase its economic isolation. Dozens of big international brands have already temporarily shuttered operations or exited Russia since it sent tens of thousands of troops into Ukraine on Feb. 24 in what it calls a special operation.

The Ukrainian parliament approved on Friday a bill to ramp up taxes on foreign companies in Ukraine by 50% if they continue to operate in Russia. The move is the authorities' latest bid to isolate Russia over its invasion, which began on Feb. 24 and which Ukraine estimates to have cost it so far more than $560 billion in economic losses and damage to infrastructure.

The new law targets companies whose continued operations in Russia "provide the aggressor state with the necessary financial resources to continue hostilities in the sovereign territory of Ukraine", according to its initiators in parliament. Before it comes into force, the bill needs to be approved in a second reading and signed by President Volodymyr Zelenskiy, who has repeatedly called for all foreign firms to pull out of Russia to increase its economic isolation.

Dozens of big international brands have already temporarily shuttered operations or exited Russia since it sent tens of thousands of troops into Ukraine on Feb. 24 in what it calls a special operation.