Reports appearing in the local press ‘give the wrong impression that the Russian Federation has placed Malta on a blacklist. The information is not correct,’ the Maltese Finance Ministry told The Malta Independent.

Newsbook had reported that “The Russian finance ministry has included Malta in a draft blacklist of ‘offshore’ countries, which will deprive some of Russia’s largest companies of government support from next year unless they repatriate money invested abroad.” It quoted news reports on Russian media, which read that the Russian Finance Ministry published a draft list of states and territories used for intermediate (offshore) ownership of assets in Russia - the so-called "transit" jurisdictions through which capital flows out of Russia, a list which includes Malta and Cyprus.

“The list of transit jurisdictions is needed to implement the ban on the allocation of state support from 2023 to companies that are directly or indirectly 25% or more owned by offshore companies,” a report by news organisation Vedomosti read.

This newsroom sent questions to the Maltese Finance Ministry asking it to provide details about the blacklisting, whether the minister is concerned and why Malta was placed on the list.

“The report which appeared on Newsbook gives the wrong impression that the Russian Federation has placed Malta on a blacklist. The information is not correct. This concerns a legislation in the Russian Federation which protects the Federal Budget from providing subsidies to offshore companies when such companies are involved in state purchases or state acquisitions,” the response by the Maltese Finance Ministry read. “The Ministry of Foreign and European Affairs confirms that this measure has nothing to do with any taxation policies of the Russian Federation. Malta and Russia ratified the Protocol Amending the Avoidance of Double Taxation Agreement in December of 2020.”