The European Union included Russia in the “gray” list of tax jurisdictions

The European Union has added Russia to the “grey” list of tax jurisdictions along with Costa Rica, the Marshall Islands and the British Virgin Islands. Information about this is published on the website of the EU Council.

Now the list consists of 16 items, mainly offshore companies. Being on the list means that EU tax authorities will not cooperate with these countries. The EU's claims against Russia are due to the fact that the country's legislation and policies do not comply with international standards in the field of taxation.

In particular, inclusion in the list is due to amendments to the legislation regulating the regime of special administrative regions (SARs) adopted in 2022. This regime has been in effect on Russky Island (Primorye) and Oktyabrsky Island (Kaliningrad Region) since 2018. The purpose of the ATS regime, as stated on the website of the Ministry of Economic Development, is “to create conditions for attracting foreign business and investment, including those with Russian roots, from foreign jurisdictions.”

As wrote Vedomosti , according to European officials, this regime creates unfair tax competition. The Council of the European Union also emphasized that Russia has not fulfilled its obligations to eliminate the harmful aspects of the introduced amendments, and the dialogue with it on the topic of tax legislation has reached a dead end due to the war in Ukraine.

The Gray List is used by the European Union as a tool to combat tax evasion and money laundering. It includes countries whose policies promote tax crimes.