Russia's Interest in Resolving the Financial Crisis in Cyprus

The World
Uncertainty continues about the bank bailout deal in Cyprus, where banks are closed and ATMs emptied out. The Guardian correspondent Miriam Elder is in Cyprus' second largest city, Limassol, home to a large Russian expat community, and sometimes referred to as "LimassolGrad." For many in Cyprus, it's payday, but they can't get at their hard-earned money. Not when the banks are closed, and that'll continue until further notice, as the small island-nation's leaders desperately try to negotiate a bailout from the European Union. One proposal would pay for the bailout, in part, through a tax on people's bank accounts. That sparked a run on banks, prompting authorities to shut them down. Which leaves regular Cypriots, like Nicole Drakou, unsure about what's happening on payday. "We were supposed to be due our salaries today," Drakou said, "but unfortunately, with all the banks being closed, they can't effect any transactions. There are no online transactions. From what I've seen on the street people are urgently trying to get to ATMS and take out as much cash as they can, hoping that our euros will be worth something tomorrow or next week." In addition to the EU, Cyprus was looking to Russia for some financial help. But Friday, Russian Prime Minister Dmitry Medvedev made it clear Moscow will not help until Cyprus strikes a deal with the EU. Russia has a lot at stake in this crisis because a lot of Russians have money in Cypriot banks. Many of those Russians, about 40,000, actually live on the Mediterranean island. The Guardian's Moscow correspondent Miriam Elder arrived in Cyprus Thursday night. She is in Cyprus' second largest city, Limassol, home to a large Russian expat community, and sometimes referred to as "LimassolGrad."
Sign up for our daily newsletter

Sign up for The Top of the World, delivered to your inbox every weekday morning.