Cypriot banks are full of Russian cash

THERE IS currently €10 billion in Russian money sitting in Cypriot banks, it emerged yesterday.

“Of the €16 billion that is deposited in Cypriot banks by foreigners, €10 billion comes from Russians,” said Russian Ambassador to Cyprus Vyacheslav Shumskiy. “It is very significant that a large part of this amount will be re-invested in Russia. These investments enjoy privileged legal provisions, including the current agreement to avoid double taxation as well as the other benefits offered by Cyprus as an international business centre.”

Shumskiy mentioned the figure during a panel discussion in Limassol titled ‘Emerging Challenges & Opportunities for Expanding Business Relations Between Cyprus and Russia’, organised by the Cyprus International Institute of Management (CIIM).

In the field of investments, Cyprus is among the top foreign investors in Russia, with $56.7 billion, representing approximately 23.4 per cent of all foreign investment in the country.

“Cyprus is consistently among the leading foreign investors in the Russian economy,” said Shumskiy.

He also highlighted the significance of the Russian market for Cyprus’ tourism, and the improvements brought about by recent government measures to ease the inflow of Russian tourists. “One of the most profitable directions in the cooperation between the two countries is tourism. The innovation of issuing preliminary passport viewing to Russian nationals has been appreciated by Russian travel agents. From January until August, a total of 105,000 Russian tourists have visited Cyprus,” he said.

He said the next step in attracting Russian tourists would be the opening of Cypriot consulates in Krasnondar, Samara and other towns.

“Russia is the most significant trading partner for Cyprus and the government is taking all necessary measures to maintain and further strengthen this position,” Finance Minister, Charilaos Stavrakis told the panel.

“During this period we expect the signing of the final agreement on the avoidance of double taxation by the Duma, which will widen investment opportunities between the two countries. Our government will maintain the low taxation regime in force today.”

Also attending the event was former Finance Minister Michalis Sarris, Phidias Pilides President of the Cyprus-Russian Business Association and CEO of PricewaterhouseCoopers, Yuri Pianykh President of the Association of Russian Businessmen in Cyprus and the General Manager of the Russian Commercial Bank (Cyprus).