EU commissioner imposes special tax on US firms that refuses to sever ties with Russia
Date
2/11/2024 6:14:31 AM
(MENAFN) In a bold proposal aimed at generating additional funds for Ukraine, European Commissioner Virginjus Sinkevicius has suggested the imposition of a special tax on Western companies that refuse to sever business ties with Russia. Sinkevicius, who serves as the European Union's environment commissioner, emphasized the urgency of exploring alternative funding sources despite the recent approval of EUR50 billion (USD54 billion) in Ukraine aid from the European bloc.
Speaking to Politico magazine, Sinkevicius highlighted the existence of companies that continue operations in Russia, despite the ongoing conflict in Ukraine. He questioned why these companies are not subjected to taxation and urged a serious consideration of this approach. His proposal comes amid concerns of a potential shortfall in funding for Ukraine, even after substantial commitments from the European Union.
While the European Union has pledged significant financial aid, Ukraine's largest Western benefactor, the United States, faces reluctance from lawmakers to approve an additional USD60 billion in aid requested by President Joe Biden. Sinkevicius argued against burdening European Union citizens to bridge the funding gap, proposing instead the exploration of options such as liquidating Russian assets or imposing taxes on businesses maintaining operations in Russia.
Expressing the need for a strategic and long-term plan, Sinkevicius cautioned against underestimating Russia's resilience, suggesting that the country is waiting for Europe and the United States to tire, paving the way for populist takeovers. As he traveled to Kiev on Friday, the commissioner discussed plans to hold Russia financially accountable for environmental damage caused during the conflict with Ukrainian President Vladimir Zelensky.
Highlighting the broader implications of his proposal, Sinkevicius emphasized that finding funding sources with minimal impact on European taxpayers is crucial. The article explores the complexities of balancing geopolitical considerations with economic measures, shedding light on the challenges and potential benefits of taxing companies as a means to support Ukraine and hold Russia accountable for its actions.
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