The European Union has voted to recognise Russia as a tax haven after the EU Council voted to add the country to their list of "non-cooperative" jurisdictions for tax purposes on Tuesday.
At a meeting between the EU27's Finance Ministers, it was decided that Russia would be one of the four new states added to the EU's blacklist, alongside the British Virgin Islands, Costa Rica and the Marshall Islands.
The EU's list now includes 16 countries which "fail to address harmful tax practices." They are no longer eligible to receive assistance from some EU funds, with member states asked to apply due diligence to any dealings with the blacklisted countries.
A press statement put out by the Council explained that Russia's addition was due to new legislation adopted by the Kremlin in 2022 which offered preferential treatment to international holding companies.
Moreover, dialogue between Europe and Russia on tax issues "has come to a standstill following the Russian aggression against Ukraine," for which the EU decided to impose a tenth package of Russian sanctions last week.
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The Swedish Finance Minister Elisabeth Svantesson, whose country is currently presiding over the Council, stated that "we ask all listed countries, "of which there are now 16, "to improve their legal framework and to work towards compliance with international standards in taxation."