Cyprus was officially removed from the Russian List of “offshore” countries as of 29 March 2010.

The development was preceded by the signing of a protocol updating the Double Tax Treaty (DTT) between the two countries in April 2009. The current DTT between Cyprus and Russia has been in effect since 1998. 
 

The new DTT, which is expected to come into effect sometime in 2010 or 2011, shall retain most of the favourable provisions that currently exist and shall remain one of the best -if not the best- DTTs that Russia has with another country. Consequently, Cyprus shall continue to be the prime springboard for inward and outward investments in Russia.

The signing of the protocol followed the inclusion of Cyprus on the White List of the Organization for Economic Co-Operation and Development (OECD) and the subsequent conclusion of a series of protocols with selected countries that had kept the island on their targeted list of offshore jurisdictions.