On 18 November 2021, the Russian Ministry of Finance (MoF) published a Guidance Letter No. 03-03-07/85525 clarifying that a loan is considered a controlled debt for Transfer Pricing (TP) purposes if it is granted to a Russian company by a third party but guaranteed or otherwise secured by any of the following companies:
- A foreign company associated with the Russian borrower in accordance with the TP rules and having a direct or indirect stake in the borrower’s capital; or
- A related company thereof.
The MoF also stated that once the guarantor has fulfilled the specified debt obligation, the debt will be recognized as controlled.