Russia engages UAE in talks on double taxation while continuing tax treaty pauses
Russia is actively pursuing a path to reduce the impact of double taxation through negotiations with the United Arab Emirates. Officials indicate that discussions are ongoing and that both sides are narrowing positions ahead of a planned round of talks within the coming month.
The Russian Ministry of Finance has emphasized that these discussions form part of a broader strategy to realign international tax commitments. In parallel, Moscow has signaled that certain tax agreements will remain suspended until Russia’s rights under current arrangements are restored. The suspension is partial in nature and will stay in effect until the parties terminate the agreements or until a new framework is agreed upon.
The ministry issued its statement after the United Kingdom raised objections to lifting the suspension on specific articles within the convention focused on the prevention of double taxation and the prevention of tax evasion in relation to income and capital gains. The current stance reflects Russia’s effort to renegotiate the terms and to secure provisions that align with its evolving fiscal and regulatory priorities.
Earlier this year, a decree from the Russian leadership introduced suspensions to certain provisions of tax treaties with a list of 38 countries deemed unfriendly. This move highlighted Russia’s leverage in shaping international fiscal relations during a period of heightened geopolitical sensitivity.
Observers note that the European Union holds a significant portion of frozen Russian assets, a matter that has influenced subsequent diplomatic and economic discussions. While the EU actions are separate from the tax treaty suspensions, they form part of the broader context in which Moscow is renegotiating its international tax posture. Analysts say the developments could affect cross-border investments and compliance strategies for multinational entities operating in or with Russia and its partner states.
Market participants and policy watchers will be watching closely as the UAE negotiations unfold. The outcome could set a precedent for how Russia negotiates bilateral tax arrangements with other major partners while maintaining its policy priorities. The process underscores the salience of tax policy in international relations and the delicate balancing act nations perform to protect fiscal sovereignty while fostering cross-border economic activity. In the meantime, firms and individuals with tax exposure involving Russia or its trading partners should stay informed about evolving treaties and the possible implications for withholding taxes, income tax, and capital gains treatment. Note that the situation remains dynamic and subject to change as talks proceed and new agreements may emerge with or without modifications to existing provisions.
At present, the Russian government continues to pursue a combination of diplomatic engagement and strategic policy adjustments to address double taxation concerns while managing the broader landscape of international tax cooperation and sanctions considerations. Attribution—official statements from the Russian Ministry of Finance and related government briefings are referenced for context and should be interpreted as part of ongoing policy communication rather than definitive legal conclusions.