Russia will exclude Cyprus from the list offshore.

Cyprus will soon be deleted from the list of offshore Ministry of Finance. This writes the newspaper Vedomosti, citing the statement by Vice-Premier and Finance Minister Alexei Kudrin. In doing so, Cyprus has undertaken to disclose information about companies of interest to the Russian tax.
Ministry of Finance of Russia and Cyprus signed a protocol that provides for changes to the agreement on avoidance of double taxation between the two countries. Now regulators in Russia and Cyprus will be able to exchange confidential information, including the owners of registered companies in Cyprus. This company may be denied in the provision of tax benefits, if that is the main purpose of registration of companies in Cyprus. However, for the entry into force would require a separate law.
Now the agreement of Russia and Cyprus on the Avoidance of Double Taxation with respect to taxes on income and capital ", which was signed by the two governments in 1998, allowing Russian companies registered in Cyprus, to optimize taxes, said the newspaper" Kommersant ". The document also provides information exchange with Russia, but the wording in the document allows the denial of information in the event that a request for it contradicts the laws of Cyprus. As a result, in January 2008 the state got into the black list of Russian Ministry of Finance.
Now in Cyprus for the optimization of taxation in Russia, many registered companies, non-residents who are shareholders of Russian companies. For example, such structures have oil and gas company Itera, Nornikelya "," Rostelecom ", the rail operator Globaltrans" KamAZ, power TGK-4, Investment Company "Troika Dialog" and many others. In addition, through its offices in the Cyprus stock market are "Renaissance Capital", BKS, "Opening" and many other Russian brokers. According to the data, which leads "Kommersant", about 90 percent of transactions on the stock exchange RTS runs through Offshore.
Offshore financial centers are traditionally considered to be attracting foreign capital through the provision of special incentives to foreign companies that agree to register in the offshore.