Support The Moscow Times!

Cypriot Finance Minister in Moscow to Propose Assets-for-Bailout Deal

Cypriot Finance Minister Michalis Sarris plans to offer a wide range of benefits to Russia in exchange for its help to rescue the island's financial sector during a meeting with his counterpart Anton Siluanov Wednesday, a report said.

Cyprus would charge a tax of 20 percent to 30 percent on Russia's deposits in local banks and offer Russia stakes in its energy projects in exchange, according to the plan that Sarris intends to negotiate, The Wall Street Journal reported, citing an unidentified official in the Cypriot government.

As part of the deal Russia will also get control of the boards of directors at Cypriot banks, the official said.

On Tuesday President Vladimir Putin held telephone negotiations with his Cypriot colleague Nicos Anastasiades, having voiced concerns about "any possible measures, which could damage the interests of Russian entities and individuals," Kremlin spokesman Dmitry Peskov told Interfax.

The two leaders agreed to continue bilateral consultations, as well as those with the European Commission, on the possible bailout for Cyprus, Peskov said.

"Putin confirmed Russia's fundamental position on settling Cypriot problems," he said.

The Cypriot parliament defeated a controversial bill Tuesday that would impose up to 9.9 percent in levy on deposits in local banks, with 36 of the 56 lawmakers having voted against. The measure had been earlier agreed with the euro zone finance ministers as a condition of providing the country a 10 billion euro bailout.

Imposing the levy that would incur multi-billion dollar losses to Russian banks and companies having deposits in Cyprus could have a negative effect on Russia's decision to help bail out the county's economy, Siluanov warned earlier this week. Cyprus is asking that Russia ease the terms of the 2.5 billion euro loan it had provided in 2011 for 4.5 years.

Related articles:

Sign up for our free weekly newsletter

Our weekly newsletter contains a hand-picked selection of news, features, analysis and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview
Subscribers agree to the Privacy Policy

A Message from The Moscow Times:

Dear readers,

We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."

These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.

We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.

By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more