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Alexander Lebedev set to lose $10,000 in raid on Cyprus bank deposits Alexander Lebedev set to lose $10,000 in raid on Cyprus bank deposits
(6 months later)
The owner of the Evening Standard and Independent, Alexander Lebedev, has revealed that he expects to lose up to $10,000 (£6,586) in the raid on Cypriot bank deposits and warned that Russians will now seek to pull funds from the island.The owner of the Evening Standard and Independent, Alexander Lebedev, has revealed that he expects to lose up to $10,000 (£6,586) in the raid on Cypriot bank deposits and warned that Russians will now seek to pull funds from the island.
Accusing Cyprus of playing "childish games" by pitting the European Union and Russia against each other, the multimillionaire newspaper proprietor expressed doubts that capital controls to be imposed by the Cypriot government in order to stem a bank run would work. "Certain schemes can be put into place," Lebedev told the Guardian by telephone from Moscow. "This is how Cyprus was making money."Accusing Cyprus of playing "childish games" by pitting the European Union and Russia against each other, the multimillionaire newspaper proprietor expressed doubts that capital controls to be imposed by the Cypriot government in order to stem a bank run would work. "Certain schemes can be put into place," Lebedev told the Guardian by telephone from Moscow. "This is how Cyprus was making money."
Lebedev said he believed he stood to lose no more than $10,000 in Cyprus. "It's not worth talking about."Lebedev said he believed he stood to lose no more than $10,000 in Cyprus. "It's not worth talking about."
Referring to the island's status as a favoured destination for Russian cash, Lebedev added: "Cyprus was always a transit jurisdiction – money would pass through and then go to Lithuania, Latvia, Belize, Switzerland, everywhere."Referring to the island's status as a favoured destination for Russian cash, Lebedev added: "Cyprus was always a transit jurisdiction – money would pass through and then go to Lithuania, Latvia, Belize, Switzerland, everywhere."
Elsewhere in Cyprus, investors met news of the haircut on wealthy account holders with rage and defiance on Monday, and warned that the effects could reach well beyond Cyprus.Elsewhere in Cyprus, investors met news of the haircut on wealthy account holders with rage and defiance on Monday, and warned that the effects could reach well beyond Cyprus.
"For sure there is anger," said Marios Cosma, head of K Treppides & Co, a firm that services international clients, mainly rich Russians. "For the first time in Europe, you have a situation where depositors are being called to 'bail in'.""For sure there is anger," said Marios Cosma, head of K Treppides & Co, a firm that services international clients, mainly rich Russians. "For the first time in Europe, you have a situation where depositors are being called to 'bail in'."
The €10bn bailout plan, agreed late on Sunday, will see Cyprus winding down its second biggest bank, Laiki Bank. Only its insured deposits, below €100,000, will be honoured as they are shifted to the Bank of Cyprus. Laiki's €4.2bn in deposits over €100,000 will be placed in a "bad bank" and could be wiped out entirely. "Those are lost," Cosma said.The €10bn bailout plan, agreed late on Sunday, will see Cyprus winding down its second biggest bank, Laiki Bank. Only its insured deposits, below €100,000, will be honoured as they are shifted to the Bank of Cyprus. Laiki's €4.2bn in deposits over €100,000 will be placed in a "bad bank" and could be wiped out entirely. "Those are lost," Cosma said.
A big percentage of those deposits belong to international clients, particularly Russians. While agreeing a parallel deal to rework the terms of a loan to Cyprus, Russian officials attempted to assuage fears over Russian investments on the Mediterranean island. Russian Commercial Bank, a wholly-owned subsidiary of state-owned bank VTB, would "not be affected or its losses will be insignificant," said Igor Shuvalov, deputy prime minister.A big percentage of those deposits belong to international clients, particularly Russians. While agreeing a parallel deal to rework the terms of a loan to Cyprus, Russian officials attempted to assuage fears over Russian investments on the Mediterranean island. Russian Commercial Bank, a wholly-owned subsidiary of state-owned bank VTB, would "not be affected or its losses will be insignificant," said Igor Shuvalov, deputy prime minister.
The Bank of Cyprus itself is 9.7% owned by Dmitry Rybolovlev, a Russian based in Monaco whose wealth is estimated at $9.1bn according to Forbes. Russian investors are estimated to hold nearly half of all deposits in Cypriot banks. Dmitry Medvedev, the Russian prime minister, said last week that state corporations, who have dominated Russia's economy under the leadership of Vladimir Putin, were exposed to Cypriot banks.The Bank of Cyprus itself is 9.7% owned by Dmitry Rybolovlev, a Russian based in Monaco whose wealth is estimated at $9.1bn according to Forbes. Russian investors are estimated to hold nearly half of all deposits in Cypriot banks. Dmitry Medvedev, the Russian prime minister, said last week that state corporations, who have dominated Russia's economy under the leadership of Vladimir Putin, were exposed to Cypriot banks.
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