Embracer Group: No Game Sales in Russia, But We’re Still Busy

Swedish gaming company Embracer Group recently clarified their business operations in Russia. This came after a report by SVT, stating that Embracer Group is the Swedish company paying the most corporate tax in Russia, according to a new report from the Kyiv School of Economics.

Embracer Group’s Operations in Russia

Contrary to what one might think, Embracer Group’s tax payments in Russia do not stem from game sales in the country. Instead, the taxes come from development work that Embracer’s subsidiaries in Russia perform for other companies.

Embracer’s IR manager, Oscar Erixon, explained the situation in a statement:

"Our operations in Russia consist of teams working on game development for studios or publishers in other countries, as well as related support services. We have no publishing business and no direct sales in Russia, and we own no IP rights in the country. This means that the Russian subsidiaries are so-called cost centers that carry out development work for companies in other countries. The turnover in the Russian companies is therefore not based on sales in Russia but is reported as intra-group turnover. This means limited profit for us in the Russian companies and thus also limited corporate tax in Russia."

So, while they may not be selling any games in Russia, Embracer Group is certainly keeping busy!

In Conclusion

It seems Embracer Group is playing a different kind of game in Russia – one that involves less selling and more developing. But hey, as long as they’re not playing "Risk," we’re all good, right?

Article Source: Feber

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