The Russian Central Bank announced on 6 September 2019 its decision to reduce the key rate from 7.25% to 7.00%. The reduction is effective from 9 September 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…