8 November 2012

Cyprus No Longer on Russian Blacklist

The Ministry of Finance of the Russian Federation has announced the removal of Cyprus from its “Black List”1 with effect from 1 January 2013. This will have an immediate positive impact on both inbound investment to Russia from Cyprus and outbound investment from Russia to Cyprus and globally.

Main points to consider as of 1st January 2013:

  • Dividends paid from Cyprus companies to Russian companies will be exempt from taxation in Russia..
  • The transactions of Russian companies with Cyprus companies will not be subject to transfer pricing provisions. The standard transfer pricing regulations will continue to apply.
  • Other possible Russian provisions being introduced with restrictive implications in respect of payments to companies in jurisdictions on the Black List will not apply to transactions with Cyprus companies.

For more information regarding Russian investments in Cyprus, please contact one of our accountants or business consultants at

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