RSPP President Alexander Shokhin discusses termination of double taxation treaty with Dutch Ambassador to the Russian Federation
18 May 2021 00:00:00

On 14 May 2021, Alexander Shokhin, President of the Russian Union of Industrialists and Entrepreneurs (RSPP), met with the Ambassador of the Netherlands to Russia, Gilles Beschoor Plug.

The parties discussed the situation regarding the termination of the double taxation treaty (DTT) between the Russian Federation and the Netherlands, as well as the investment climate in Russia and ways of developing Russian-Dutch business cooperation.

Alexander Shokhin noted that since the start of the year the RSPP has been in talks with the Russian government and the Ministry of Finance on the termination of the DDT with the Netherlands. “Russian business believes that the termination of the treaty will have a negative impact on the economy, therefore it is extremely important to continue talks and to try and find a compromise,” said Alexander Shokhin.

Shokhin also noted that it was necessary to consider entering into a new treaty, or for a decision to be taken at the highest intergovernmental level committing to renegotiate the DDT, just as the DDTs with Cyprus, Luxembourg and Malta were recently renegotiated.

Gilles Beschoor Plug noted that the Dutch government is open to dialogue and further talks on this issue in order to reach a general consensus and prevent serious consequences for Russian-Dutch relations.

Alexander Shokhin recalled the previous Russian-Dutch dialogue on trade and economic cooperation, established in 2007 by the RSPP and the Confederation of Netherlands Industry and Employers (known as VNO-NCW) to increase the effectiveness of business participation in the plenary sessions of the Intergovernmental Commission (IGC). Until 2014, the dialogue was held at a high level, major bilateral projects were discussed, and there was a significant increase in investment, trade and economic relations between the two countries.

Today, there is considerable scope for resuming and expanding business relations, in particular, at the Saint Petersburg International Economic Forum (SPIEF), and the International Council for Cooperation and Investment (ICCI).The Ambassador supported this proposal and promised to take up this matter with the Chairman of VNO-NCW.

The Ambassador of the Netherlands noted that, due to the current pandemic, Dutch businesses will not be able to attend SPIEF in 2021. Recognising the importance of a forum for discussing issues of economic interaction in the face of global challenges, Gilles Beschoor Plug agreed to consider the possibility of holding a joint business dialogue next year.

At the end of the meeting, Alexander Shokhin stressed that the RSPP was open to further cooperation and the development of mutually beneficial relations, and invited Dutch companies to take part in the union’s activities. “We’re not only willing to invite representatives of Dutch companies to join our platforms, but also to become members of the RSPP,” Alexander Shokhin summarised.