EU Says Sanctions Don't Apply to Payment of 'Exit Tax' to Russian Central Bank
The EU updated a frequently asked question under its Russia sanctions regime pertaining to the Central Bank of Russia. The question asked whether the payment to fulfill the "obligation to pay voluntary transaction" falls under the definition of "transactions related…
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to the management of reserves as well as assets" under the bloc's sanctions regime. The EU said the Russian Governmental Commission sets the obligation to pay a voluntary transaction, or so-called "exit tax," which is not part of Russia's official tax legislation. Sanctions don't apply because payment is a "precondition for" allowing EU companies to divest from Russia and doesn't lead to "enabling the Russian Central Bank to manage its reserves or assets."