International Business with Middle Eastern Countries: Tax, Currency, and Legal Risks

Asian and Middle Eastern countries are currently the main trading partners for Russian companies, which are highly interested in establishing a presence in these markets. However, Russian businesses face certain tax and currency risks when conducting cross-border transactions due to legal nuances that have been established in legislative and regulatory compliance practices. There are also challenges with organizing an economic presence in these countries. As a result, one of the Russian government’s top priorities is to improve legal mechanisms to reduce barriers for international business, as well as to simplify the regulation of business relations with foreign partners. What tax risks are inherent with cross-border transactions in Russia? What currency restrictions on international transactions exist in Russia? What key problems do representatives of foreign companies face in interaction with Russian businesses? What are the best ways to improve national regimes in order to enhance investment appeal for Russian investors?