Russia on the blacklist of tax havens

The European Union has added Russia to the blacklist of tax havens, a measure above all symbolic for a country already under economic sanctions linked to the invasion of Ukraine.

Besides Russia, the British Virgin Islands, Costa Rica, the Marshall Islands have also been included in this list which now includes sixteen entities.

The Council of the EU “reviewed Russian legislation adopted in 2022 once morest the criteria of (EU) tax good governance and found that Russia had not fulfilled its commitment to remedy the harmful aspects of a special regime for international holding companies,” according to a statement. “In addition, the dialogue with Russia on tax-related issues was interrupted following the Russian aggression once morest Ukraine”, adds this institution.

What consequences?

The inclusion of a country on this list makes it more difficult to trade with companies located there, explained a spokeswoman for the Council. But this list is singled out for its ineffectiveness by the NGO Oxfam.

German MEP Markus Ferber (EPP, right) considered that “the fact of adding Russia to the list is a strong political signal but which will have limited practical consequences”. “If EU finance ministers really wanted to tackle tax havens, they would design a set of painful penalties to accompany listing,” he added.

Russia is already targeted by a series of sanctions from the EU, which has also decreed asset freezes and bans on staying in the EU once morest more than 1,300 people and 171 entities.

Countries removed from the gray list

“We call on all countries on the list to improve their legal frameworks and strive to comply with international standards on taxation,” said Swedish Finance Minister Elisabeth Svantesson, whose country holds the presidency. semi-annual meeting of the Council of the EU. At the same time, she “congratulated” North Macedonia, Barbados, Jamaica and Uruguay, “who have managed to fulfill their commitments” and have been able to be removed from a “grey list”.

A joke ?

The NGO Oxfam called the blacklist a “joke”. “Not only has the EU delisted countries with zero corporate tax rates, such as Bermuda and the Cayman Islands, but it is ignoring EU tax havens, such as Luxembourg”, denounced Chiara Putaturo, of this NGO, in a press release.