Ministry of Finance of Cyprus on the Reaction to the Suspension of the provisions of the Tax Agreement with Russia

The Ministry of Finance of Cyprus commented on Russia’s decision to suspend certain provisions of the tax agreement between the two countries.

According to the Cypriot Ministry of Finance, Russia’s decision to suspend the implementation of certain provisions of the double taxation agreement with Cyprus does not portend additional negative consequences. The diplomatic channel was used to notify the Republic of Cyprus of the signing of the relevant decree by the President of Russia.

In light of the restrictions already imposed by the Russian Federation on the export of foreign exchange and payments to various jurisdictions, including Cyprus, which were classified as “hostile” due to sanctions, and in light of the sanctions imposed on the Russian Federation that led to the suspension of extensive economic and trade ties with the countries of the European Union, the Ministry of Finance of Cyprus does not expect additional negative consequences from this decision and the failure to comply with certain provisions of the agreement.

The Cypriot Ministry of Finance also stressed that it had not consulted with the Russian authorities regarding the suspension of part of the provisions of the agreement.