Russia in UE Black List
The European Union’s Council of Economics and Finance has added Russia to the Blacklist, which is a list of non-cooperative jurisdictions for tax purposes. But what does it mean to be included in this “blacklist”? Does Russia really pose a fiscal concern, or is its inclusion in the blacklist an instrument used by the European Union to deal with the Russian-Ukrainian conflict? This analysis comes from Davide Chiantore, Head of Research at Abalone Solitaire.
Being on the EU’s Blacklist implies that a country is considered non-compliant with the tax policies and standards set by the EU. This designation carries reputational damage, which can negatively impact a country’s relationships with other countries and international organizations, as well as potentially increasing the cost of doing business with EU member states. However, it’s important to note that this decision does not necessarily imply that Russia is a tax haven or that it has engaged in illegal activities.
Chiantore suggests that the EU’s decision to include Russia in the Blacklist may be more politically motivated than economically driven. The move could be a means for the EU to put pressure on Russia in the ongoing conflict with Ukraine, rather than reflecting any genuine fiscal concerns. Therefore, it remains to be seen whether Russia’s inclusion in the Blacklist will have any significant impact on its economy or its relationship with the EU.