The Russian Central Bank has announced the decision to increase the key rate from 7.50% to 7.75% on 14 December 2018. The increase is effective from 17 December 2018.

For tax purposes, the key rate is important in relation to the safe harbor rates for interest income and expense on controlled debt. For ruble-denominated loans, the safe harbor rates range from 75% to 125% of the key rate. For…