Russia Reorganizes Its Double Tax Treaties As The UAE Tops Russian Fixed Investment List

The head of Russia’s Federal Tax Service (FTS), Daniil Yegorov, has stated that Russia has restructured its Double Tax Treaty (DTA) arrangements with other countries, with these now being aligned with countries that provide favorable investment environments for Russian investors.

DTAs are bilateral agreements aimed at preventing situations where the same income of a legal or natural person is taxed simultaneously in different countries. DTAs may also provide for special tax benefits on certain aspects, depending on the investment climate. In 2023, Russian President Vladimir Putin signed a decree suspending Russia’s application of certain provisions of double taxation avoidance agreements with 38 countries, including the United States, Canada, most European countries (Germany, France, Italy, Spain, Poland, Bulgaria, Ireland, Finland, and Cyprus), as well as Australia, the United Kingdom, and Japan.

Yegorov was discussing the issue with Russian President Putin last week and stated, “We have concluded agreements on avoiding double taxation with a number of countries. We have new agreements with the United Arab Emirates and Malaysia, while agreements are underway with Oman and Qatar. This will ensure the protection of investments and the exchange of information so that there is no double taxation, but at the same time there is no situation where there is no taxation anywhere. And we have one country where investment has surged ahead—the United Arab Emirates. We have observed more than ₽1 trillion (US$12.7 billion) of investments into fixed assets owned by Russian companies and individuals in the UAE.”

Yegorov also pointed out the decline of Russian investment into Europe and the rise of Russian investment overseas. He stated that Russian overseas direct investment has increased 16% since 2021, with about 75% of this going mainly into the Commonwealth of Independent States.

At the same time, Russian investment into Cyprus, which was a classic haven for Russian offshore investment for many years, fell 30%. Many Russian listed companies have redomiciled from Cyprus, part of the European Union, back to Russia or to markets such as Kazakhstan. Examples are here, here, here, here and here.

Yegorov said that in 2021, Russia’s global trade included 80% of transactions and 70% of trade turnover with Western countries, with this now reduced to just 20% of Russia’s global total.

During 2025, Russia has completed a turnaround of its entire annual trade turnover – estimated at about US$671.9 billion—to 80% of its trade turnover and settlements with friendly countries.