As from the 1^st of January 2013, Cyprus will no longer be in the Russian Black list. This will have an immediate positive impact on both countries investment’s.

The result of this removal from the Black list is as follows:

• Dividends paid from Cyprus companies to Russian companies will be exempt from taxation in Russia, benefiting from the Russian participation exemption does not apply to dividends from countries on the Black list.
• The transactions of Russian companies with Cyprus companies will not be subject to the onerous transfer pricing introduced with effect from the 1/1/2013for countries on the Black list.