Cyprus Inflicts Significant Financial Damage on Russia

Cyprus is making an “exceptionally crucial” contribution to amplifying the sanctions pressure on Moscow, according to the Ukrainian ambassador to the Eastern Mediterranean island, long noted for its close business ties with Russia. Cyprus has nearly severed these ties, following suit with its European Union partners by imposing sanctions against Moscow for its invasion of Ukraine in February 2022.
The support and contribution of Cyprus in intensifying sanctions pressure on Russia are immensely significant, as Russia lost its ability to circumvent sanctions. Cyprus was previously considered a primary source of direct foreign investment in Russia due to many Russian companies located on the island, but sanctions have led to many companies relocating. One of the latest is the Russian banking group TCS Holding, which owns the Russian online bank Tinkoff.
Last year, the International Consortium of Investigative Journalists detailed how financial organizations in Cyprus attempted to shield oligarchs’ assets from looming sanctions immediately following Russia’s invasion, while a small number of Cypriots personally faced sanctions from the U.S. and the U.K.
The Cypriot government asserts that it “does not tolerate” sanctions violations and is receiving technical assistance from the United States to close any potential loopholes.