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The Russians Are Outtahere: "The Cypriots Killed Their Country In One Day"

Tyler Durden's picture




 

It appears the Cypriots (or more clearly the European leaders) do not appreciate the extent to which Russia has propped up the local economy. “When the Russians leave who is going to stay at the Four Seasons for $500 a night? Angela Merkel?” one wealthy Russian asks rhetorically, as The FT reports, they are receiving a deluge of overseas phone calls from helpful Swiss bankers looking to swoop up the deposit transfers. "The locals should understand: as soon as the money leaves, the people who go to restaurants, buy cars and buy property leave too. The Cypriots’ means of living will disappear," and there are signs that the locals are getting how drastic this situation is, as a large billboard has sprung up at Larnaca Airport with a Russian flag and the words "Brat’ya ne predaite nas!" - "Brothers, don’t betray us!" Many Russian businessmen appear to have one foot out of the door already and are considering whih jurisdiction to move to as they await to see if Medvedev follows through on his threat to dismantle the double tax treaty with Cyprus.

 

And now the rumors are that billionaire Russian tycoon Roman Abramovich, owner of Chelsea Football Club, has been arrested in the USA.

 

Via The FT,

...

 

One Cypriot lawyer with Russian clients said he had already been approached by half-a-dozen European banks in locales ranging from Latvia to Switzerland to Germany, some of them promising they could open new bank accounts for his clients in under an hour.

 

...

 

The Cypriots killed their country in one day,” says Mr Mikhin, referring to Friday March 15, when President Nicos Anastasides accepted the EU’s proposal to seize €5.8bn in emergency funds from Cyprus’s local and foreign depositors.

 

...

 

“The locals should understand: as soon as the money leaves, the people who go to restaurants, buy cars and buy property leave too. The Cypriots’ means of living will disappear,” he says.

 

“They are saying we laundered all the money, but they lived on that money for 10 years and forgot about it.”

 

...

 

Says another Nicosia-based lawyer: “I don’t understand why it is money laundering when it’s in Cyprus, when in London it’s a perfectly respectable company.”

 

...

 

If the double-taxation treaty is lifted there will be no reason for us to stay in Cyprus,” an oligarch’s Russian lawyer says bluntly.

 

Mr Mikhin complains that the Cypriots do not appreciate the extent to which Russia has propped up the local economy. “When the Russians leave who is going to stay at the Four Seasons for $500 a night? Angela Merkel?”

 

But there are signs that a growing number of locals realise how drastic a mass emigration of Russian business would be.

 

Over the past week, a new billboard has sprung up on the highway between Limassol, the palm-treed beach town favoured by the Russians, and Larnaca International Airport.

 

Drawing on Russia and Cyprus’s shared Orthodox faith and deep political ties dating back to the Soviet era, the advertisement displays a massive Russian flag, with a desperate plea in Russian underneath: “Brat’ya ne predaite nas!”

 

“Brothers, don’t betray us!”

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Mon, 03/25/2013 - 13:49 | 3373171 Hippocratic Oaf
Hippocratic Oaf's picture

'Brothers don't BETRAY us'

???

Pot calling kettle black me thinks.

Mon, 03/25/2013 - 13:52 | 3373186 redpill
redpill's picture

The Cypriots didn't do anything, they didn't get to vote on this one.

But they couldn't have bailed out those banks even if they wanted to, so it's a moot point.  This was inevitable once they invested in Greek bonds.

Mon, 03/25/2013 - 13:53 | 3373194 RSBriggs
RSBriggs's picture

"This was inevitable once they WERE FORCED TO invest in Greek bonds."

There - fixed it for you.

Mon, 03/25/2013 - 13:56 | 3373214 akarc
akarc's picture

This was inevitable once GS got done with Greece

Mon, 03/25/2013 - 16:01 | 3373792 Bicycle Repairman
Bicycle Repairman's picture

"I don’t understand why it is money laundering when it’s in Cyprus, when in London it’s a perfectly respectable company.”

Because in London, dear chap, they do not do business with "oligarchs" and "mouthpieces".

And it's London's job, not yours.

S/

Mon, 03/25/2013 - 16:15 | 3373991 walküre
walküre's picture

Oh but they do business with oligarchs and the Queen loves the company too!

Fuck the City. Pestilence and small pox on them.

Mon, 03/25/2013 - 21:59 | 3375237 Youri Carma
Youri Carma's picture

London is criminal bankster city number one. But don't worry the pound and the UK are doing just fine with these great banksters ..ugh... ugh...

Mon, 03/25/2013 - 13:56 | 3373220 James_Cole
James_Cole's picture
"The ECB Killed Cyprus In One Day."

Fixed.

Mon, 03/25/2013 - 13:57 | 3373225 kliguy38
kliguy38's picture

"Malinvestment" bitchezzzzzzz......and the U.S. is LOADED with it......gl

Mon, 03/25/2013 - 14:01 | 3373257 smlbizman
smlbizman's picture

yeah thats the line that makes me laugh most,...they bought that greek junk cause they wanted to....

Mon, 03/25/2013 - 14:25 | 3373356 The Big Ching-aso
The Big Ching-aso's picture

"Brothers, don't betray us!"

Russia's response......

"Comrades, we haven't but you're still phucked!"

 

 

Mon, 03/25/2013 - 14:16 | 3373366 ParkAveFlasher
ParkAveFlasher's picture

Correct me if I'm wrong but Cyprus has plenty of natural gas, and therein lies the rub on Russia.  The world is moving as if LNG is the next cheap oil.

Island nation, English bases, fossil fuel reserves, wtf is this, the Falklands?

Mon, 03/25/2013 - 15:07 | 3373686 Winston Churchill
Winston Churchill's picture

Most of the gas field is in Israeli/Palestinain waters.

Turkey disputes jurisdiction on the very small balance,

The reserves are totally unproven in any case.

Don't believe everything you read.

Mon, 03/25/2013 - 15:30 | 3373768 taraxias
taraxias's picture

Horseshit.

The gas find has been confirmed by Noble and it's in the Cyprus AOZ.

Mon, 03/25/2013 - 18:10 | 3374393 laomei
laomei's picture

There's more than one Cyprus however, and Cyprus has no money to actually exploit the gas anyways.

Tue, 03/26/2013 - 08:29 | 3376137 nicxios
nicxios's picture

No there is not more than one Cyprus. There is Cyprus and an illegaly occupied part of the island only Turkey recognizes.

Mon, 03/25/2013 - 14:18 | 3373388 Stock Tips Inve...
Stock Tips Investment's picture

Europeans really believe they are solving the Cyprus problem? Imagine what will happen in ste small country in the coming months? I would not be in place.

Mon, 03/25/2013 - 14:24 | 3373438 The Big Ching-aso
The Big Ching-aso's picture

The Greeks must feel a lot better about themselves.    At least they're now just the second most screwed up EU partner. 

Mon, 03/25/2013 - 15:37 | 3373800 asteroids
asteroids's picture

No, the Greeks are fucked. Cyprus will now be forced to liquidate all those bonds in order to make depositors whole. They should force the ECB to buy them at par. But, I suspect the ECB will offer them 30cent/euro.

Mon, 03/25/2013 - 13:56 | 3373216 localsavage
localsavage's picture

Funny how there was never talk of the bank investors loosing all of their money or the bank repaying these confinscations with interest down the road.  If i were a banker, I would sleep with one eye open.

Mon, 03/25/2013 - 13:59 | 3373239 earnyermoney
earnyermoney's picture

I'll bet the "choice" to invest in Greek bonds was at the point of a gun?

I might not remember correctly, but the purchase of Greek debt was spread around the EU members, correct?

Mon, 03/25/2013 - 14:02 | 3373263 Dr. Engali
Dr. Engali's picture

When 61% of the Cypriots want to stay in the EU regardless of the actions that were taken , I would say they certainly did betray Russia.

Mon, 03/25/2013 - 15:14 | 3373689 Arisu
Arisu's picture

Honestly, I think those opinion polls have to be taken with more than just one grain of salt:
"Tesa Arcilla reports that a poll of Cypriots found that 67% want to exit the euro zone and instead want closer ties with Russia."

In my opinion, those polls are never representative, despite what people claim, which is why they are used as a tool to sway public opinion, due to the anticipated effect of leaving the adherents of the unfavorable result with the feeling of being alone, or at least in the minority, even when they are in truth not.

Mon, 03/25/2013 - 14:14 | 3373355 kito
kito's picture

@redpill...they couldve set a precedent and told Pig Merkel to fuck off.......leave the eu......revert to the cypriot pound...pay off the creditors....leave the large russian depositors broken but intact...the currency may not have been worth much...but at least it wouldve been SOMETHING.........the decision by cyprus to accept the blood money by Pig Merkel means the russian investors are left with NOTHING, cyprus continue their debt slavery and they sold out their largest clientele in the process.......

Mon, 03/25/2013 - 14:26 | 3373452 bagehot99
bagehot99's picture

And they are still stuck with the fucking Euro. It's almost funny.

Almost.

Mon, 03/25/2013 - 19:43 | 3374507 trader1
trader1's picture

who cares about the russians, anyways?

<<< for russians and their sympathizers to express themselves

Mon, 03/25/2013 - 14:17 | 3373379 Lordflin
Lordflin's picture

You are correct... a bunch of poor folks just trying to raise families... cattle to the oligarchy... salt of the earth, I say. Time to break out the pikes.

Mon, 03/25/2013 - 14:19 | 3373399 Jack Burton
Jack Burton's picture

Good point "redpill", only a madman, or someone sure of complete ECB money printing backing for them, would have bought Greek bonds!

My god damn cat is smart enough to not have touched anything Greek for at least the last 3 years!

Cyprus is now a ward of the EU. Russia has no need to help the economy or bailout the banks. Russia had a nice warm place to put their loot, there are other places. And a lot of this money is dirty, but as one person said above, if this is done in London, it is an honest business, if done in Cyprus, they call it money laundering.

London is and has been ground zero for every drug and terrorist dollar on earth. The London bankers and trader make a good living laundering money from drugs, sex slaves, blood diamonds, Russia coal mines, Russian prison camp labor, insurance fraud, Christ! You name it and the London banks are up to their lips in it. I would not doubt if Al-Qaeda has numerous accounts in London to clean up their heroin money, NOT to mention the government leaders of Afghanistan, they launder their opium money in London.

Canary Warf and The City are full of highly paid money launderers!

Mon, 03/25/2013 - 14:28 | 3373465 bagehot99
bagehot99's picture

It's not money laundering if you wear a Gucci suit.

It's wealth management.

Mon, 03/25/2013 - 15:32 | 3373775 Key-Rick
Key-Rick's picture

How does changing where you deposit your money constitute laundering?  If it's money obtained illegally, storing it out of the country doesn't make it clean, just out of reach of the owner's home country.

Money laundering is setting up a legitimate looking business and running ill-booten gotty money through it disguised as legitimate revenues.

Perhaps we're talking more along the lines of "hiding" ill-gotten gains, or avoidance of taxation on those gains.  That's a different story.  People have been hiding money they don't want people to find for whatever reason for centuries in.............Switzerland.  Swiss bankers are notorious for not asking where the money came from and not sharing information about the depositors with anyone.  What's the difference?

Mon, 03/25/2013 - 16:51 | 3374086 BorisTheBlade
BorisTheBlade's picture

It's obviously not about money laundering being a problem, it's about the fact that Cyprus several steps lower in a food chain compared to other money laundering centres. Cyprus goes down, Luxembourg, London, Switzerland are to benefit. Cyprus was appointed a loser, that's the difference.

Mon, 03/25/2013 - 14:26 | 3373451 kaiserhoff
kaiserhoff's picture

Leo always loved Greedy Greek bonds.

 

Poor, Leo.

Mon, 03/25/2013 - 14:34 | 3373498 akak
akak's picture

No, deserving Leo.

Mon, 03/25/2013 - 15:24 | 3373745 JPM Hater001
JPM Hater001's picture

"The Cypriots didn't do anything,"

 

WHOA!!!!

Someone spent the 13 billion and had one hellofa party r-p.

Mon, 03/25/2013 - 15:47 | 3373846 MartyBee
MartyBee's picture

Everyone is an expert on Cyprus these days. Here's another article I came across and thought I would share it, and maybe get some discussion, comments on it's validity, lack thereof, or throw it in the dust bin of another conspiracy theory.
What's going on in Cyprus is more than just stealing money from the people and giving it to the banks. After all, they are only looking to raise a paltry $10 billion. The Fed prints the equivalent of that amount every 3 days! And they have given Greece hundreds of billions! Why would they 1. deny Cyprus chump change and 2. go about it the way they have by stealing from depositors and risking a run on the banks? The only reason I can come up with is, it was intended that way, the same as that which is at the root of every conflict. To protect any threat against the all mighty petro-dollar. They did it when Saddam wanted to trade oil for Euros. In the case of Cyprus, by destroying the reputation and any viability for the Euro. Now that the Euro has risen from 80cents/US dollar to 1.30/US dollar and most countries have stopped increasing their US dollar reserves in preference of the Euro. This is a threat. The Euro now makes up 25% of most countries reserves and was Iran's preferred currency for the sale of it's oil reserves. By destroying the Euro they will have destroyed Iran, North Korea, Cuba, etc, plus 25% of most countries reserves... all without having to fire a single bullet or declaration of war. They have done it before. In the 80s when oil prices were rising and so was Russia as a result, they had the Saudi's revise their reserves up and flood the market with oil. And so did every OPEC member. By that action they destroyed Russia's economy without firing a single shot. Ask yourself, why hasn't the UK joined the Euro? Could it be because they know the fate of the Euro? Why is Germany repatriating their gold? Could it be because they see it coming and want to possibly re-issue the Deutsch Mark? Ireland, Portugal, Spain, Italy, Greece, Cyprus and maybe even France will just be the casualties (the PIIGS that get slaughtered) for the protection and the reign supreme of the all mighty US dollar. The undisputed world currency.
These are very dark and powerful forces. The Fed, IMF, WTO, etc. The people behind these organizations will stop at nothing. They have even had presidents killed! Abraham Lincoln for introducing the green-back and JFK for executive order 11110 which allowed him to issue approx. $4 billion in currency, which was quietly and quickly removed after his assassination.
It is rumoured that the Fed has printed and loaned Europe another $1.2 trillion this January to fund it's banks. This money will have to be paid back, with interest! Europe will have to labour to pay back this money. And when they do, where will the interest owed come from? when the Fed only printed and loaned $1.2 trillion. The interest doesn't exist. The Fed/IMF/World Bank can then bankrupt Europe, as they have done to most 3rd world countries... Sending those European countries to 3rd World status. They may also allow those countries to settle those debts by giving up whatever they have left of their gold reserves. Because they have the power to print and issue money. They loan you the money. Then they call the loan. If you don't have it they will allow you to settle in hard assets. Sometimes for pennies on the dollar. Eventually they will control and rule the world. The Rothschild Family and the throne of England are at the top of the pyramid.
Anonymous

Mon, 03/25/2013 - 16:03 | 3373933 billsykes
billsykes's picture

It's just so bizarre that reasonable intelligent individuals let this go on.

The question no one in the world in any mainstream media will ask: 

 

How exactly do banks lend the EU money based in Euro?

Who authorizes and makes the money, the EU or the bank? 

If your answer is the bank then the bank owns the EU.  

 

I find that pretty incredible that there is this powerful unpaid self reinforcing censorship. step back from it for a second, apply this to a bunch of different things- no one speaks out. Not 1 disgruntled blue collar worker fired working at a pink slime company, not 1 person at a monsanto or aspertime, not 1 teacher (recent), not 1 you name the shitty shit NGO, company, or anything. Fuck they had to hack the CO2 scammers to reveal that they were fudging data.

Either everyone is in on it forever and somehow gets a check, or there is something else as I have not gotten anything in my mailbox.   

 

Mon, 03/25/2013 - 17:52 | 3374330 MartyBee
MartyBee's picture

Even the Fed have bosses.

US, Canada, New Zealand, Australia are NOT independent and belong to the Crown...

It’s a real eye opener to know that the Middle Inn of the Crown Temple has publicly acknowledged there were at least five Templar Bar Attornies, under solemn oath only to the Crown, who signed what was alleged to be an American Declaration of Independence. This simply means that both parties to the Declaration agreement were of the same origin, the Crown Temple. In case you don’t understand the importance of this, there is no international agreement or treaty that will ever be honored, or will ever have lawful effect, when the same party signs as both the first and second parties. It’s merely a worthless piece of paper with no lawful authority when both sides to any agreement are actually the same. In reality, the American Declaration of Independence was nothing more than an internal memo of the Crown Temple made among its private members.

More here: http://www.freedomwriter.com/issue27/am77.htm

Mon, 03/25/2013 - 17:24 | 3374221 BlackVoid
BlackVoid's picture

Does not make sense sorry.

The FED wants a weak dollar and they are getting it. Yes, now there is a small bump, but that is not significant. They would not do this just to slow down dollar depreciation. 

The goal is one or both of these:

- to check if it works to confiscate bank accounts

- antagonize Russia and EU zone

Mon, 03/25/2013 - 18:49 | 3374522 trader1
trader1's picture

i like the way you think, but what do repatriating gold and re-issuing the D-mark have even remotely in common? 

if history is any guide, the one is not implicit of the other.

 

Mon, 03/25/2013 - 15:47 | 3373847 MartyBee
MartyBee's picture

Everyone is an expert on Cyprus these days. Here's another article I came across and thought I would share it, and maybe get some discussion, comments on it's validity, lack thereof, or throw it in the dust bin of another conspiracy theory.
What's going on in Cyprus is more than just stealing money from the people and giving it to the banks. After all, they are only looking to raise a paltry $10 billion. The Fed prints the equivalent of that amount every 3 days! And they have given Greece hundreds of billions! Why would they 1. deny Cyprus chump change and 2. go about it the way they have by stealing from depositors and risking a run on the banks? The only reason I can come up with is, it was intended that way, the same as that which is at the root of every conflict. To protect any threat against the all mighty petro-dollar. They did it when Saddam wanted to trade oil for Euros. In the case of Cyprus, by destroying the reputation and any viability for the Euro. Now that the Euro has risen from 80cents/US dollar to 1.30/US dollar and most countries have stopped increasing their US dollar reserves in preference of the Euro. This is a threat. The Euro now makes up 25% of most countries reserves and was Iran's preferred currency for the sale of it's oil reserves. By destroying the Euro they will have destroyed Iran, North Korea, Cuba, etc, plus 25% of most countries reserves... all without having to fire a single bullet or declaration of war. They have done it before. In the 80s when oil prices were rising and so was Russia as a result, they had the Saudi's revise their reserves up and flood the market with oil. And so did every OPEC member. By that action they destroyed Russia's economy without firing a single shot. Ask yourself, why hasn't the UK joined the Euro? Could it be because they know the fate of the Euro? Why is Germany repatriating their gold? Could it be because they see it coming and want to possibly re-issue the Deutsch Mark? Ireland, Portugal, Spain, Italy, Greece, Cyprus and maybe even France will just be the casualties (the PIIGS that get slaughtered) for the protection and the reign supreme of the all mighty US dollar. The undisputed world currency.
These are very dark and powerful forces. The Fed, IMF, WTO, etc. The people behind these organizations will stop at nothing. They have even had presidents killed! Abraham Lincoln for introducing the green-back and JFK for executive order 11110 which allowed him to issue approx. $4 billion in currency, which was quietly and quickly removed after his assassination.
It is rumoured that the Fed has printed and loaned Europe another $1.2 trillion this January to fund it's banks. This money will have to be paid back, with interest! Europe will have to labour to pay back this money. And when they do, where will the interest owed come from? when the Fed only printed and loaned $1.2 trillion. The interest doesn't exist. The Fed/IMF/World Bank can then bankrupt Europe, as they have done to most 3rd world countries... Sending those European countries to 3rd World status. They may also allow those countries to settle those debts by giving up whatever they have left of their gold reserves. Because they have the power to print and issue money. They loan you the money. Then they call the loan. If you don't have it they will allow you to settle in hard assets. Sometimes for pennies on the dollar. Eventually they will control and rule the world. The Rothschild Family and the throne of England are at the top of the pyramid.
Anonymous

Mon, 03/25/2013 - 16:21 | 3374010 walküre
walküre's picture

makes sense

it's hard to get rid of weeds. they keep coming back and stronger.

Mon, 03/25/2013 - 13:49 | 3373172 Tinky
Tinky's picture

Newest addition to the ABSOLUTE Vodka stable: ABSOLUTE IDIOCY

Mon, 03/25/2013 - 13:56 | 3373210 ziggy59
ziggy59's picture

I think that Absolut is Sweden made..

Mon, 03/25/2013 - 14:05 | 3373288 ThirdWorldDude
ThirdWorldDude's picture

Was... until the Swedish Absolut Idiots sold it.

Mon, 03/25/2013 - 14:17 | 3373383 idea_hamster
idea_hamster's picture

The Swedes technically committed to join the Euro -- but did not agree to a specific date by which they would do so.

I think they get a style point for that one.

Mon, 03/25/2013 - 15:15 | 3373711 ThirdWorldDude
ThirdWorldDude's picture

Don't get too excited as Swedes are as broke as everybody else.

 

3 out of 6 top-rated banks on this chart are Swedish, with the fourth TBTF ranking 15th. What an achievement, you might say. How does one get to be so successful? Easy - enact a national banking policy of 0% reserve requirements and convince all the debt slaves that they need not worry, the state will forever take care of them as long as they consume like there is no tomorrow; until times change and it doesn't. 

Once Sweden's RE bubble pops we'll all get to witness sceneries far worse than what we've already seen in Greece or Spain. 

Tue, 03/26/2013 - 09:21 | 3376321 idea_hamster
idea_hamster's picture

Oh, I agree -- IIRC, Sweden has some EPIC level of exposure to the Eastern European countries that were expected to ride the wave of expanding industrial production (Ukr, Bel, etc.) and hold huge amounts of Euro- and CHF-denominated debt that cannot ever be re-paid.

But as far as savvy negotiating tactics, I think the "We promise to join!  (But we won't say when.)" move showed some prescience.

Mon, 03/25/2013 - 14:07 | 3373304 Urban Redneck
Urban Redneck's picture

But it's owned by the French... (the liquor industry itself is an oligarchy despite the hundreds of major brands)

Mon, 03/25/2013 - 14:12 | 3373340 WarHorse
WarHorse's picture

You buy the bottle for the same price but it's empty

Mon, 03/25/2013 - 14:39 | 3373535 thisandthat
thisandthat's picture

It's just water, but you can't complain because that's what it says in the label (vodka=diminutive for water).

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