This initiative was made by the Ministry of Finance and the Ministry of Foreign Affairs of the Russian Federation:
“With regard to Russia, since 2022, unilateral economic restrictive measures have been introduced by Western countries, including in February of this year Russia was included by the European Union in the list of non-cooperative tax jurisdictions, the so-called “EU black list”. The introduction of restrictive measures unilaterally is a violation of international law. Accordingly, Russia has grounds for introducing retaliatory measures. In this regard, the Ministry of Finance and the Russian Foreign Ministry proposed to the President of the Russian Federation to issue a decree on the suspension of agreements on the avoidance of double taxation with all countries that have introduced unilateral economic restrictive measures against Russia.
These agreements may be suspended by a presidential decree. In this case, the application of reduced withholding tax rates (tax exemptions) in respect of income subject to the agreements will be suspended from the moment the relevant decree is issued.
At the moment, the tax agreement on the avoidance of double taxation between Russia and Latvia has already been denounced. The President of the Russian Federation signed the Law on this on February 28. The denunciation is due to the fact that Latvia suspended the agreement due to a special operation in Ukraine, which is a significant violation of the agreement.
Read more: Information from the Ministry of Foreign Affairs of the Russian Federation of 15 March 2023 "The Russian Foreign Ministry and the Russian Ministry of Finance take the initiative to suspend double taxation agreements with unfriendly countries" (https://www.garant.ru/hotlaw/federal/1613800/)
Federal Law No. 40-FZ of 28 February 2023 "On the denunciation of the Agreement between the Government of the Russian Federation and the Government of the Republic of Latvia on the avoidance of double taxation and on the prevention of tax evasion with respect to taxes on income and capital" (https://www.garant.ru/hotlaw/federal/1610826/)
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