The Russian Finance Ministry has drafted a decree that will exclude the Mediterranean jurisdiction and European Union member state of Malta from the “blacklist” of 41 offshore jurisdictions.

The Russian Finance Ministry has drafted a decree that will exclude the Mediterranean jurisdiction and European Union member state of Malta from the “blacklist” of 41 offshore jurisdictions, TASS, the state news agency, has reported.

The decision comes after Russia and Malta agreed in May to avoid double taxation and prevent tax evasion regarding income tax, the report said.

In September, members of the Federation Council (upper house of the Russian parliament) and its chairperson, Valentina Matviyenko, sent a set of draft laws on de-offshorisation to the State Duma (lower house of parliament).

If adopted, they will penalise tax evasion with a prison term of up to six years.

In March, Irina Yarovaya, chair of the Duma Security and Anti-Corruption Committee, asked the Finance Ministry and the Central Bank to draw a blacklist of offshore jurisdictions.

She also suggested that Vnesheconombank, which is essentially a development corporation, should not issue loans to companies that are not registered in Russia.