This is what government spokesman Nicos Christodoulides told The Cyprus Daily on Wednesday, hours after the new measures were announced.


“The operations of VTB or any other Russian subsidiary bank in Cyprus will not be affected at all. Cyprus and other countries have ensured that their operation won’t be affected,” Christodoulides said.


VTB, Russia’s second largest lender by assets, operates in Cyprus through the Russian Commercial Bank, which holds about €2 billion worth of its client deposits. According to VTB, the Russian Commercial Bank is Cyprus’ third largest bank by assets, which total €14 billion.


VTB has called the sanctions “politically motivated” and “unjust” but said it was confident it could raise capital if needed.


Ambassadors from the 28-member European bloc agreed on Tuesday to restrictions on trade of equipment for the oil and defence sectors, and “dual use” technology with both defence and civilian purposes. 


In addition, Russia’s state run banks would be barred from raising funds in European capital markets with the measures set to be reviewed in three months.
Previously, Europe had imposed sanctions only on individuals and organisations accused of direct involvement in threatening Ukraine.


The EU had shied away from wider “sectoral sanctions” designed to damage its biggest energy supplier. The new measures have been coordinated with Washington in the hope that Russian President Vladimir Putin will back down from a months-long campaign to seize territory and disrupt Ukraine.


Calls for tougher sanctions rose after the downing of a Malaysian airliner in Ukraine, allegedly by Russia-backed separatists. All 298 people on board were killed when the plane was downed on July 17. 


Bank of Moscow, Russian Agricultural Bank, and VTB Bank have been added to a list of companies to which US persons and firms are barred from providing financing for longer than 90 days or issuing new equity for the companies.

Source: InCyprus