Investment into Russia
Being the European Union’s 3rd largest trading partner, and an essential energy supplier, Russia presents vast opportunities for investment. Traditionally, such investment into Russia has been routed via Cyprus. According to the Federal Statistics Service, Cyprus was the top investor into Russia in 2009 and the first quarter of 2010, accounting for a just over 50% of all foreign investment. The following is a list of the top four countries investing in Russia, and their level of accumulated investment respectively:
% of 2009
% of 2010
4. United Kingdom
After the first ever official visit of Russian president Dmitry Medvedev to Cyprus in October 2010, a new era in economic relations between the two countries was signaled in. The visit ended uncertainty for thousands of Russian and Cypriot owned companies based in Cyprus after Russia branded Cyprus as a tax haven in 2007, and placed it in a black list together with more than 50 other countries.
As a result of the signing of the Protocol, which amends the current Russia-Cyprus Double Tax Treaty (DTT), Cyprus has been removed from the Russian 'Black List'.