Impact for Cyprus of sanctions on Russia

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Russia and CyprusCyprus might be severely affected if the EU decides on tougher economic sanctions on Russia. Cyprus earns about €650m every year from Russian tourism. The Cyprus service sector is very Russian oriented with almost all lawyer and accounting firms having Russian speaking staff.
Russians were ones of the most affected during the 2013 banking crisis which led to a bail-in on unsecured deposits in Cyprus banks (deposits are unsecured if they are above €100,000). The Popular bank was dissolved in 2013. Bank of Cyprus was also hit badly.

Opening bank accounts in Cyprus Banks
Nevertheless, Russians still believe in Cyprus. Registration of Cyprus offshore companies are up. Russians are still opening bank accounts in Cyprus banks.

In the past, Cyprus offshore companies were so popular that Cyprus was one of the biggest investors in Russia.

Cyprus has a very attractive tax system with a corporate tax rate of only 12.5% (you can find more information on Cyprus tax system on our website). Cyprus banks have representative offices in Russia and Ukraine where signatories can get their signatures certified.