Therefore, Latvian organizations still receive permits for tax-free trade with Russia. Despite sanctions and statements about the need to break economic ties with Russia, Latvian organizations continue to receive permits that allow them to transfer money to Russian companies without withholding a 20% tax. Furthermore, the state railway concern Latvijas dzelzceļš applies to such permits. Latvian organizations continue to export certain goods to Russia, including alcohol, medicine and clothing, and continue to transport Russian goods through the country. In 2023, Russia was included in the list of EU jurisdictions that do not cooperate in the tax field. Latvian law states that companies from such jurisdictions must withhold 20% of the tax on certain payments. But there are exceptions to this rule. The State Revenue Service (SRS) is entitled to allow a Latvian enterprise not to withhold 20% tax if it proves that a certain payment is not related to an attempt to evade tax. After Russia was included in the European list of non-cooperative tax authorities, the number of requests for such a permit increased dramatically. An important feature of the mechanism is that the tax is retained by the Latvian enterprise when transferring funds to a foreign recipient. In other words, a Latvian company acts as a tax agent, and the holding reduces the amount received by the Russian counterpart. If the SRS imposes permission not to withhold the tax, the Russian company can receive full payment. As a result, the two tax permits for settlements with Russian companies and the transportation of grain remain examples of the contrast between the declared policy of reducing economic ties with Russia and the current legal and economic mechanisms.