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Mother Russia extends sphere of influence to mediteranean

  • 06-07-2012 10:24AM
    #1
    jonniebgood1
    Registered Users, Registered Users 2 Posts: 3,578 ✭✭✭


    I am unsure whether to be bemused or amused by this story.

    Experts from the European Commission, the European Central Bank and the IMF arrived in Cyprus on Tuesday to look into its request for financial aid.

    The government has not said how much it is seeking but reports suggest it may need around €10bn ($12.5bn).

    Sources told AFP that Cyprus has also been conducting negotiations in parallel with Russia, from which it secured a low-interest €2.5bn-euro loan last year to cover refinancing needs for 2012. http://www.telegraph.co.uk/finance/financialcrisis/9377443/Cyprus-offered-better-bail-out-conditions-by-Russia-than-EU-and-IMF-says-president.html
    Cyprus' president defended his government's decision to seek financial aid from the island nation's eurozone partners while at the same time asking for a loan from Russia.

    Dimitris Christofias said Thursday that he sees nothing wrong with simultaneously pursuing a loan from Russia that may come with better terms than a European Union bailout. http://www.cbsnews.com/8301-505245_162-57466575/cyprus-eu-bailout-russian-loan-compatible/
    It does pose some questions though as to what Russia is doing here.


Comments

  • #2
    Scofflaw
    Registered Users, Registered Users 2 Posts: 23,283 ✭✭✭✭Scofflaw


    jonniebgood1 wrote: »
    I am unsure whether to be bemused or amused by this story.




    It does pose some questions though as to what Russia is doing here.

    Cyprus has close relations with Russia - indeed, Cyprus is Russia's version of Jersey or Bermuda, if you like:
    Russia will take Cyprus off its offshore blacklist after it agreed to expose tax cheats, with other tax paradises set to follow suit.

    Tiny Cyprus is officially the third largest foreign investor in Russia. That's almost entirely Russians who've registered firms there. But after Nicosia pledged to open tax books for Moscow police, spooked nationals are expected to send millions of dollars home. Yaroslav Lissovolik, Chief Economist at Deutsche Bank Russia, says it could have a major effect.

    “40% of inflows of FDI into Russia came from places like Cyprus or Virgin Islands. If this capital flows back into the country there could be also pressure on the Rouble even to appreciate.”

    http://rt.com/business/news/cyprus-comes-in-from-the-cold-as-tax-havens-feel-the-heat/

    Part of the linkage will be Orthodox Christianity, but a major explanation will be the current President:
    The President of Cyprus is a Communist, the leader of AKEL, or the Progressive Party of Working People Party, the only Marxist leader in the EU. Educated in the Soviet Union, he is a supporter of Vladimir Putin, the Russian President and has a bust of Lenin on his desk in Cypriot Communist party's headquarters.

    http://www.telegraph.co.uk/news/worldnews/europe/cyprus/9378058/Cyprus-takes-over-EU-presidency-with-paean-to-Russia.html

    Apparently, Cyprus has formally requested another Russian loan today:
    Cyprus is seeking a second loan from Russia in less than a year to help mitigate threats to its economy after becoming the fifth of the euro area’s 17 members to request a bailout.

    The east Mediterranean island has asked to borrow 5 billion euros ($6.2 billion) from Russia, according to Finance Minister Anton Siluanov, who said the application is being considered.

    “We’ve received a request from Cyprus and we’re looking at it now,” Siluanov told reporters today in Moscow. “Cyprus didn’t just approach us but also asked the European Union for help.”

    And as to what the Russians say they're doing there:
    “We have an interest in seeing the entire euro zone and everything connected to the EU currency union remain fairly stable,” Shuvalov said June 28. “If we can, without any damage to our reserves, offer some assistance, knowing that we’re stabilizing the situation and thereby helping ourselves -- in that case the government should do it.”

    http://www.businessweek.com/news/2012-07-06/cyprus-asks-russia-for-5-billion-euro-loan-siluanov-says

    The Dutch are sceptical about the Russian lack of conditions:
    ”The only free cheese is to be found in a mousetrap,” said a Dutch diplomat responding to the idea that Russian loans would be free of strings.

    Russia is, of course, going to be interested in extending its influence in any way it can, particularly in the EU.

    cordially,
    Scofflaw


  • #3
    jonniebgood1
    Registered Users, Registered Users 2 Posts: 3,578 ✭✭✭jonniebgood1


    Scofflaw wrote: »
    Part of the linkage will be Orthodox Christianity, but a major explanation will be the current President:
    The President of Cyprus is a Communist, the leader of AKEL, or the Progressive Party of Working People Party, the only Marxist leader in the EU. Educated in the Soviet Union, he is a supporter of Vladimir Putin, the Russian President and has a bust of Lenin on his desk in Cypriot Communist party's headquarters.
    http://www.telegraph.co.uk/news/worl...to-Russia.html

    Strange given Putin own relationship with Russia's communist party.

    So Cyprus is a type of Cayman islands to Russians.


  • #4
    poeticseraphim
    Closed Accounts Posts: 930 ✭✭✭poeticseraphim


    jonniebgood1 wrote: »
    Strange given Putin own relationship with Russia's communist party.

    So Cyprus is a type of Cayman islands to Russians.

    Russian money in Cyprus has been there for years it's nothing new...

    Russia has been using Cyprus as a transit point for Russian arms for years..

    Cyprus has a huge Russian expat community. They establish businesses and invest in the area and back home. They establish bilateral trade links.

    Cyprus was accused of letting Russia of using it as ashipment point for arms to Syria recently. Which it denies, but they admit that there have been 'unscheduled stops of Russian ships carrying arms' in Cyprus.

    I would imagine the Cypriot president is a communist in the same way Claire Daly is a socialist....only enough to benefit themselves.


  • #5
    jonniebgood1
    Registered Users, Registered Users 2 Posts: 3,578 ✭✭✭jonniebgood1


    poeticseraphim wrote: »
    I would imagine the Cypriot president is a communist in the same way Claire Daly is a socialist....only enough to benefit themselves.
    ??? Is there more to your point on this?
    poeticseraphim wrote: »
    Russian money in Cyprus has been there for years it's nothing new...

    Russia has been using Cyprus as a transit point for Russian arms for years..

    Cyprus has a huge Russian expat community. They establish businesses and invest in the area and back home. They establish bilateral trade links.

    Cyprus was accused of letting Russia of using it as ashipment point for arms to Syria recently. Which it denies, but they admit that there have been 'unscheduled stops of Russian ships carrying arms' in Cyprus.
    The arms deals are not really something the EU will raise much of an issue about although they maybe should. No prizes for guessing why they dont make a big issue of this. The stories in January were reported but without major controversy. The cypriot authorities established that the contents were 'dangerous' and then let them go (this was also to do with an accident last summer in similar circumstances). The business links are a more likely reason for this 'investment'. And this type of comment from the Prime minister of Cyprus would immediately make me suspicious-
    “I will tell you very honestly and honourably that we are grateful to the Russian Federation for their ongoing and absolute support without anything in exchange.” http://www.ft.com/cms/s/0/a0dcae8a-c6ae-11e1-963a-00144feabdc0.html#axzz202Nj9Twz


  • #6
    poeticseraphim
    Closed Accounts Posts: 930 ✭✭✭poeticseraphim


    jonniebgood1 wrote: »
    ??? Is there more to your point on this?


    The arms deals are not really something the EU will raise much of an issue about although they maybe should. No prizes for guessing why they dont make a big issue of this. The stories in January were reported but without major controversy. The cypriot authorities established that the contents were 'dangerous' and then let them go (this was also to do with an accident last summer in similar circumstances). The business links are a more likely reason for this 'investment'. And this type of comment from the Prime minister of Cyprus would immediately make me suspicious-

    No there was no more to my point on that. But...

    There is a league between property developers and corrupt lawyers which have screwed a lot of British citizens over....Christofias reigns over this. It has problems in its finance and banking sector..i mean come on Putin and the russians love the place...

    The British effectively pay no rent for their basis there.

    It is anything but communist...

    Christofias is paid over 158,000..for this he runs a country full of corrupt lawyers and developers and a completely corrupt financial sector built on political money.Over 1/4 of Cypriot MP's fail to file a tax return..some have not done so for over ten years!

    Corruption is rife throughout the public sector. Acceptanceof bribes abuse of power for public gain etc

    The average 'industrial wage ' in Cyprus is about 1600 euros a month....compare that with his salary...not too communist.



    Cyprus is infact half Greek ..Half Turkish..

    The biggest party is the Progressive party of working people which is communist. Which the president in a member. However the biggest thing which drives Cypriot politics is the divide between the Turks and the Greeks.

    Russian businessmen and tourists have flocked to the small island, long seen as a safe haven for Russian money with the attraction of a corporate tax rate of ten per cent, and highly discreet banking. Hardly communist.

    Turkey invaded in the 70's on the grounds of protecting Turkish cypriots and effectively ended a lot of russian soviet influence that had built up. It was paritioned by the UN. So the Russians built up support in the Greek part playing on the Divide.


    They have huge gas supplies which they intend to supply the EU with...so i guess it is partially why Russia likes them..and the Turks apparantly have been trying to interfere with the intent to supply gas to the Eu using way ships...

    The EU has really no wish to alienate Cyprus it has other borrowing options and maybe better ones...and they want Gas...

    Valuable licensing rights are being fought over...and they also have offshore oil...
    Ordinary cypriots will see littleof this


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