The Russian Central Bank announced on 13 December 2019 its decision to reduce the key rate from 6.50% to 6.25%. The reduction is effective from 16 December 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…