Russian and Ukrainian business dealings with Cypriot banks dwindled due to sanctions, banks say
Cyprus' banks say their exposure to risky Russian and Ukrainian businesses shrunk by more than 13,000 clients and 35,000 accounts, amounting to $2.17 billion, in the year after Moscow’s 2022 invasion of its neighbor as they adhered to sanctions that the U.N., the European Union, the U.S. and Britain have imposed on Russia
NICOSIA, Cyprus (AP) — Cyprus' banks said Friday their exposure to Russian and Ukrainian businesses shrunk by more than 13,000 clients and 35,000 accounts, amounting to 2 billion euros ($2.17 billion), in the year after Moscow’s 2022 invasion of its neighbor as they adhered to sanctions that the U.N., the European Union, the U.S. and Britain have imposed on Russia.
According to official figures seen by The Associated Press Friday, the proportion of Russian clients in Cypriot banks almost halved in the same period to 0.35%, while Russian deposits fell from 2.21% to 1.53% of the banks' total.
Cypriot banks are keen to showcase a sustained, decade-long turnaround from lax supervisory practices that attracted shady depositors, including wealthy Russian oligarchs. Cypriot officials said a transparent financial system free of such practices would help entice legitimate international investment.
That turnaround, triggered by a 2013 financial crisis that brought Cyprus to the brink of bankruptcy, resulted in the number of Russian and Ukrainian clients being slashed by 90% and 61% respectively between 2014 and 2023. Russian and Ukrainian deposits in the same period dwindled by 83% and 71% respectively.
