Russian fears that their banking system could collapse

Russians have stashed away huge sums in Cyprus since the Soviet Union collapsed in 1991, making the most of low taxes and light regulation to keep money safe and, in some cases, to launder it.

But Russian banks, firms and individuals will be hit hard if Cyprus imposes the one-off levy on bank deposits as part of a EU bailout, and some started withdrawing money even before the deal was agreed.

“Corporate clients have been calling and emailing asking what is happening and they are quite concerned to say the least, because they need to know what to do," said Thomas Keane of law firm Keane Vgenopoulou & Associates.


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