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Benedicte Gravrand, Opalesque Geneva:
The recent Cyprus banking crisis, triggered by the Eurozone debt crisis, sent shock waves through Europe, Russia and the global financial system. It was said that Russian companies and individuals then had about $31bn deposited in Cyprus. Cyprus did call on Russia for a loan extension and financial aid against assets, such as gas exploration rights, and controlling shares in Cypriot banks, but Russia ended the talks. A few days later, on March 25, Cyprus and the EU agreed on a $13bn bailout package. Cyprus is the fifth country that the Eurozone has helped with its debt crisis. The package would help pay the country’s bills but also deduct billions of euros from the savings accounts of wealthy Russians and leave billions more of Russian assets frozen in Cypriot banks, noted Foreign Affairs, which went on to say that Moscow’s decision to turn down a deal with Nicosia was, in the end, in Russia’s long-term interests.
Stratfor, a geopolitical intelligence company, predicts that Russia will remain aware of its vulnerability after taking this hit from the offshore financial haven of Cyprus, ...................... To view our full article Click here
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