Luxembourg Offers East Europeans And Russians Additional Structuring Options

Prospects are clouded for Cyprus as a domicile for investment and transaction structures set up by entrepreneurs and investors from Russia and other eastern European countries such as Ukraine following a levy on bank deposits and capital controls imposed by the government as part of a package of measures to stabilise the country's banking sector.

However, east European investors unsure about the long-term future of Cyprus as a financial centre have a choice of other jurisdictions within the European Union through which to channel investments either into EU countries or back into Russia.

One of them is Luxembourg, which has extensive financial services experience, expertise and infrastructure, in addition to political, economic and financial stability, a broad range of structuring vehicles and an extensive network of double taxation treaties.