On April 12 and 13, the US and the UK included 13 Cypriot lawyers and accountants in their sanctions lists for facilitating Russian oligarchs. The measures are aimed to dismantle the financial networks of Roman Abramovich and Alisher Usmanov. 10,000 bank accounts and other assets belonging to their alleged “financial fixers” were frozen. The sanctions also signal (finally) that the Western allies will no longer look the other way when Cyprus breaks the sanction game’s rules.
Cyprus allegedly cracked down on those named by sanctions, Financial Commissioner Pavlos Ioannou told state broadcaster CyBC. The assets of the individuals and entities concerned have been frozen. “It was unavoidable for the banks to take the action they did… and the government also acted prudently,” Ioannou said.
Among those sanctioned by the UK are Demetris Ioannides and Christodoulos Vassiliades, Cypriot professionals that facilitated Russian oligarchs, including Roman Abramovich and Alisher Usmanov. Ioannides is responsible for crafting the murky offshore structures which Abramovich used to hide over £760 million assets ahead of being sanctioned following Putin’s illegal invasion of Ukraine. Vassiliades, a Cypriot lawyer, is at the center of a web of trusts and offshore companies that link Usmanov and Sutton Place Estate.
On Friday, rumors had it that more Cypriots and Cyprus-based companies could be added to sanctions lists drawn up by London and Washington. The Bank of Cyprus confirmed that about 10,000 accounts belonging to 4,000 Russian depositors would be shut down. In a statement, the bank revealed that affected account holders had been informed en masse about the decision.
Cyprus has perfectly exploited its geopolitical position in recent decades, becoming a financial hub for Russians, Israelis, and the Middle East. In the process, Cyprus is known for its very relaxed financial market supervision and friendliness towards Russians and Israelis with money.
Sanctions against Russia will not significantly impact the Cypriot economy for now, Central Bank of Cyprus (CBC) governor Constantinos Herodotou said after meeting President Christodoulides on Friday.
