Crisis in Cyprus

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TV/Radio Broadcast CNN International
Despite Cyprus' favorable fiscal and legal enviroment and the fact that Russian state is one of Cyprus' main creditors, Russia's involvement has generated some surprises.
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Russia’s deep ties to Cyprus have made the country react quickly to unprecedented EU bailout conditions, involving a simple levy on all deposits. Carnegie’s Matthew Rojansky spoke to CNN International about the relationship between the two countries and the consequences of this still unconfirmed policy.

Rojansky characterized the relationship between the two countries as a ‘two-way street’ with lanes of different widths. The size of Russian corporate deposits in Cyprus is comparable to the country’s GDP. Many Russian investors have registered companies on the island to benefit from its favorable fiscal and legal climate. Russia has also become Cyprus’ main creditor over recent years and has offered to grant Cyprus more favorable payback terms, Rojansky added.

To explain rumors concerning a possible geopolitical subtext, Rojansky pointed to the fact that, while investors may not be happy to see 10 to 15 percent of their deposits being withdrawn, this comes at a time when President Putin is trying to convince important civil servants and businessmen to repatriate their funds. Rojansky also noted that such a dramatic step would not have been taken were it not for the EU’s main contributor, Germany, disapproving of Cyprus’ lax attitude to Russian money-laundering.

End of document

About the Russia and Eurasia Program

The Carnegie Russia and Eurasia Program has, since the end of the Cold War, led the field of Eurasian security, including strategic nuclear weapons and nonproliferation, development, economic and social issues, governance, and the rule of law.


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In Fact



of the Chinese general public

believe their country should share a global leadership role.


of Indian parliamentarians

have criminal cases pending against them.


charter schools in the United States

are linked to Turkey’s Gülen movement.


thousand tons of chemical weapons

are in North Korea’s possession.


of import tariffs

among Chile, Colombia, Mexico, and Peru have been eliminated.


trillion a year

is unaccounted for in official Chinese income statistics.


of GDP in oil-exporting Arab countries

comes from the mining sector.


of Europeans and Turks

are opposed to intervention in Syria.


of Russian exports to China

are hydrocarbons; machinery accounts for less than 1%.


of undiscovered oil

is in the Arctic.


U.S. government shutdowns

occurred between 1976 and 1996.


of Ukrainians

want an “international economic union” with the EU.


million electric bicycles

are used in Chinese cities.


of the world’s energy supply

is consumed by cities.


of today’s oils

require unconventional extraction techniques.


of the world's population

will reside in cities by 2050.


of Syria’s population

is expected to be displaced by the end of 2013.


of the U.S. economy

is consumed by healthcare.


of Brazilian protesters

learned about a massive rally via Facebook or Twitter.


million cases pending

in India’s judicial system.

1 in 3


now needs urgent assistance.


political parties

contested India’s last national elections.


of Egypt's labor force

works in the private sector.


of oil consumed in the United States

is for the transportation sector.


of Chechnya’s pre-1994 population

has fled to different parts of the world.


of oil consumed in China

was from foreign sources in 2012.


billion in goods and services

traded between the United States and China in 2012.


billion in foreign investment and oil revenue

have been lost by Iran because of its nuclear program.


increase in China’s GDP per capita

between 1972 and today.


billion have been spent

to complete the Bushehr nuclear reactor in Iran.


of Iran’s electricity needs

is all the Bushehr nuclear reactor provides.



were imprisoned in Turkey as of August 2012 according to the OSCE.

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