The Russian Central Bank has announced the decision to reduce the key rate from 7.75% to 7.50% on 14 June 2019. The reduction is effective from 17 June 2019.

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 loans den…