Page 80 - RusRPTSept23

6.1.2 Budget dynamics - specific issues...
The authorities will not abandon the principle of targeting a specific amount of income according to the budget rule, which could lead to the ruble self-heating effect. The decision not to make purchases of foreign currency into reserves for oil and gas windfalls until the end of the year against the background of the collapse of the ruble, which was announced by the Central Bank on August 9, de facto suspended the budget rule in 2023. The new model of the budget rule, fully operational since the beginning of 2023, assumed the purchase of foreign currency in reserves for oil and gas revenues in case they exceeded the nominal target or base level - 8 trillion rubles. for the whole year, the amount was distributed by months. In other words, situations could arise when the ruble weakens, respectively, ruble income from exports increases, and according to the rule, the authorities must buy foreign currency into reserves, which puts even more pressure on the exchange rate.
Vladimir Putin signed a decree partially suspending double tax treaties (DTTs) with 38 states - all "unfriendly" countries. Contrary to previous fears, this should not affect taxes of individuals - the articles regulating them have not been suspended. But for businesses working with Western countries, the reduced rates on the most popular cross-border payments will no longer work.
The list of countries with which Putin partially suspended the DTT (here is the text of the decree) includes all unfriendly countries, except for the Netherlands and Latvia, with which the agreements were denounced back in 2021 and early 2023, respectively. In particular, these are all EU countries, the USA, Great Britain and Japan.
RUSSIA Country Report September 2023 www.intellinews.com