Cyprus will not be going on Russia's black list

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18.12According to Christodoulos Angastiniotis, Head of the Investment Promotion Agency (CIPA), during the Finance Minister Harris Georgiades visit to Moscow the issue of double taxation was discussed and it was confirmed Cyprus will not be put on Russia’s black list of tax havens. This comes after the poor ranking Cyprus received from the Global Forum, overseen by the Organisation for Economic Co-operation and Development (OECD). And Russian authorities considered that their Cypriot counterparts did not provide fast or satisfactory replies to questions raised regarding companies registered on the island with Russian nationals as the beneficiaries. Cyprus has until September 2014 to conform to transparency requirements. If it does not, and the country’s ranking remains poor, then counterparties to existing double taxation treaties (52 in total) might start cancelling the agreements. At the beginning of the week President Vladimir Putin addressed the nation heralding a series of initiatives to crack down on Russian companies who register and pay taxes in offshore jurisdictions. Adding Russian companies registered in offshore jurisdictions will not be allowed to bid at state tenders.