Western countries have been introducing unilateral economic restrictive measures against Russia since 2022. Among other things, the EU put Russia on its list of non-cooperative jurisdictions for tax purposes, or the so-called EU black list, in February of this year.
Imposing unilateral restrictions is a violation of international law. Accordingly, this gives Russia grounds to introduce retaliatory measures.
In this connection, the Ministry of Foreign Affairs of Russia and the Ministry of Finance of Russia have proposed that the President of the Russian Federation issue an executive order on suspending double taxation avoidance agreements with all countries that have introduced unilateral economic restrictions against Russia.
The said agreements should be suspended until Russia’s violated rights are restored.
If the Foreign Ministry and the Finance Ministry’s proposals are supported, the application of reduced tax rates at the source (tax exemptions) to incomes covered by the double taxation avoidance agreements will be suspended as of the date of issue of the relevant executive order.