Putin terminates double taxation agreements with the West

Russian President Vladimir Putin signed a decree suspending double taxation agreements between Russia and "unfriendly countries", including the United States.

According to the text of the decree, the decision to cancel the double taxation agreements was made "based on the need to take urgent measures" in connection with unfriendly actions of the countries. The agreements will thus be terminated until unfriendly countries eliminate violations of Russia's economic and other interests.

Double taxation agreements are concluded not to levy one and the same fees twice in the resident country and in the country where the source of income is located.

In March 2023, the Russian Finance Ministry and the Russian Foreign Ministry proposed suspending double taxation agreements with "unfriendly countries".

The Finance Ministry said that such a move would come as Russia's response to unilateral economic sanctions of Western countries, including the blacklisting of EU tax jurisdictions.

Nikolai Arefiev, deputy chairman of the State Duma Committee on Economic Policy, then said that Russia annually loses up to five trillion rubles because of such agreements.