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Reuters: Putin hits out at "dangerous" Cyprus bank deposit levy (18 March 2013)
"While assessing the proposed additional levy on bank accounts in Cyprus, Putin said that such a decision, should it be made, would be unfair, unprofessional and dangerous," Kremlin spokesman Dmitry Peskov told journalists.

...

Russia has made no decision yet on whether to extend the duration or ease the terms of a sovereign loan to Cyprus, a government source told Reuters earlier on Monday.

European Union officials have said they expect Russia to extend the 2.5 billion euro ($3.27 billion) loan by five years, until 2021, and refinance terms.

...

Officials have also said Russian investors are interested in buying a majority stake in Cyprus Popular Bank and increasing their holdings in Bank of Cyprus - the two biggest banks on the Mediterranean island.

The involvement of any Russian investors - private or state - in recapitalisation of the island's struggling banks is still a matter for discussion, the first government source said.



I distribute. You re-distribute. He gives your hard-earned money to lazy scroungers. -- JakeS
by Migeru (migeru at eurotrib dot com) on Mon Mar 18th, 2013 at 06:16:42 AM EST
Well he would say that wouldn't he.

Peak oil is not an energy crisis. It is a liquid fuel crisis.
by Starvid on Mon Mar 18th, 2013 at 07:12:56 AM EST
[ Parent ]
Gazprom Offers Cyprus Bank Restructuring Deal to Avoid EU Bailout | Greece.GreekReporter.com Latest News from Greece

Russian energy giant Gazprom has offered the Republic of Cyprus a plan in which the company will undertake the restructuring of the country's banks in exchange for exploration rights for natural gas in Cyprus'’ exclusive economic zone, local media reported.

Representatives of the Russian company submitted the proposal to the office of Cypriot President Nicos Anastasiades on Sunday evening, Sigma TV reported.

The proposal states that Gazprom will fund the restructuring of the country's crippled financial institutions in exchange for substantial control over the country's gas resources while Cyprus won't need to take the harsh bailout package offered by the EU.



Any idiot can face a crisis - it's day to day living that wears you out.
by ceebs (ceebs (at) eurotrib (dot) com) on Mon Mar 18th, 2013 at 07:23:06 AM EST
[ Parent ]
Win - win - win.

I distribute. You re-distribute. He gives your hard-earned money to lazy scroungers. -- JakeS
by Migeru (migeru at eurotrib dot com) on Mon Mar 18th, 2013 at 07:28:43 AM EST
[ Parent ]
Get your news one year early at the European Tribune.

Peak oil is not an energy crisis. It is a liquid fuel crisis.
by Starvid on Mon Mar 18th, 2013 at 07:40:21 AM EST
[ Parent ]
And just think of the US reaction. I wonder if Obama has already started putting pressure on Merkel?
by gk (gk (gk quattro due due sette @gmail.com)) on Mon Mar 18th, 2013 at 07:42:31 AM EST
[ Parent ]
It's possible that the adults are in charge and the Eurogroup has become irrelevant.

Dean Baker: Time for the Fed to Take Over the European Central Bank's Job (Al Jazeera English via CEPR, November 28, 2011)

It would be bad enough if the ECB's incompetence just put Europe's economy at risk. After all, there are tens of millions of people who stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics. But the consequences of a euro meltdown do well beyond the eurozone.

...

Of course this sort of intervention will look horrible from the standpoint of the eurozone countries. It will appear as though they cannot be trusted to manage their own central bank and deal with their own economic affairs.

Unfortunately, this is the case. They have entrusted the continent's most important economic institution to a group of ideological zealots who are infatuated by the sight of low inflation rates even as whole economies collapse in ruins and tens of millions of people needlessly go unemployed.



I distribute. You re-distribute. He gives your hard-earned money to lazy scroungers. -- JakeS
by Migeru (migeru at eurotrib dot com) on Mon Mar 18th, 2013 at 07:59:35 AM EST
[ Parent ]
what? A Dean Baker column from late 2011 proves this? Last time I heard of him - last week or so - Dean Baker was a prophet in the wilderness in his own country.

 What's next, reading Chomsky to learn about the intentions of Obama?

by IM on Mon Mar 18th, 2013 at 08:31:11 AM EST
[ Parent ]
It doesn't prove anything. What I'm saying is that it is necessary that "the adults take control" and there weren't any in attendance at the Justus Lipsius building last Friday night.

What Dean Baker wrote in 2011 is even more true 18 months later: the Eurogroup cannot be trusted to manage its own affairs.

I distribute. You re-distribute. He gives your hard-earned money to lazy scroungers. -- JakeS

by Migeru (migeru at eurotrib dot com) on Mon Mar 18th, 2013 at 08:40:59 AM EST
[ Parent ]
Cue EU whining about Russia extending its influence.

I was on holiday for the weekend - Sam and I went away for the first time in five years - and I'm bloody well going back. I'm boggled at how crazy the world has gone while I was offline.

by Colman (colman at eurotrib.com) on Mon Mar 18th, 2013 at 07:50:26 AM EST
[ Parent ]
Nature abhors a vacuum.

Peak oil is not an energy crisis. It is a liquid fuel crisis.
by Starvid on Mon Mar 18th, 2013 at 07:56:00 AM EST
[ Parent ]
I really have no idea why the Cypriot parliament, or government, would turn this offer down, having heard the Eurozone offer.

Even if it turns out to be incompatible with Euro membership, or EU membership. Being a subsidiary of Gazprom might look like a better option.

It is rightly acknowledged that people of faith have no monopoly of virtue - Queen Elizabeth II

by eurogreen on Mon Mar 18th, 2013 at 09:21:28 AM EST
[ Parent ]
Western European newspapers seem to be studiously ignoring this Gazprom aspect of the matter.

It is rightly acknowledged that people of faith have no monopoly of virtue - Queen Elizabeth II
by eurogreen on Mon Mar 18th, 2013 at 11:16:55 AM EST
[ Parent ]
The Gazprom story has now been denied by Gazprom.

ITAR-TASS: Gazprombank initiates Cyprus restructuring plan - Gazprom (18/03/2013)

Russia's Gazprom has not offered the Republic of Cyprus financial assistance in restructuring the country's banks in exchange for the right to gas production in the exclusive economic zone of Cyprus. Gazprombank initiated this offer, a spokesman for the gas giant told Tass.

Itar-Tass has failed to get an immediate commentary from Gazprombank as of yet.

Cypriot Sigma TV reported on Monday that Gazprom had offered a plan, in which the company will undertake the restructuring of the country's banks in exchange for exploration rights for gas in Cyprus' exclusive economic zone.



I distribute. You re-distribute. He gives your hard-earned money to lazy scroungers. -- JakeS
by Migeru (migeru at eurotrib dot com) on Mon Mar 18th, 2013 at 01:06:20 PM EST
[ Parent ]
Went on a google-search to find the relationship between Gazprom and Gazprombank. It appears to be complicated.

How Gazprom lost control of Gazprombank - FT.com

By 2008, Gazprom had relinquished its majority on the Gazprombank board. Today, Gazfond's Yuri Shamalov, as well as Anatoly Gavrilenko, head of Lider, are both on the board. So too is the head of Sogaz - Sergei Ivanov junior, son of deputy prime minister Sergei Ivanov, a close Putin ally and former KGB colleague.

I would say that in one way Gazprombank is still Gazprom's bank, in another they are both part of the ruling network in Russia. Anyway, if an offer was made it has to have the support of the Russian government, and thus it does not matter which corporation it was.

Sweden's finest (and perhaps only) collaborative, leftist e-newspaper Synapze.se

by A swedish kind of death on Mon Mar 18th, 2013 at 03:21:44 PM EST
[ Parent ]
Spiegel: Zypern: Zwangsabgabe nützt Putins Anti-Schwarzgeld-Kampagne (18.03.2013)
Europas Rettungsplan für Zypern kostet russische Bürger bis zu vier Milliarden Dollar. Moskaus Medien reagieren hysterisch, Oligarchen und Finanzhaie hingegen entspannt. Dem Kreml spielt die Krise sogar in die Karten: Sie hilft Putin, Russlands Schwarzgeld unter Kontrolle zu bekommen.

...

Dem Kreml spielt die Zypern-Krise ohnehin in die Karten. Krise und Zwangsabgaben erschüttern die Reputation der Insel als sicherer Hafen für Russlands Reiche, und das kommt Moskau gelegen. Wladimir Putin hat ausländischen Steuerparadiesen den Kampf angesagt. "Ent-Offshorisierung" hat er die Kampagne genannt. Putin will russisches Geld aus dem Ausland zurück in die Heimat holen und den Finanzplatz Moskau aufwerten.

...

Russlands Finanzminister Anton Siluanow hat Gesprächsbereitschaft signalisiert, fordert aber eine Gegenleistung. Zypern müsse "Maßnahmen ergreifen, um Informationen über die Arbeit unserer Firmen offenzulegen" - und die Namen der Geschäftsleute, die dahinter stehen.

In brief, Putin is fighting tax evasion and offshore tax havens, so the deposit Levy is useful to him.

It would have been even more useful had it taken the form originally proposed by Schäuble: no levy for insured deposits below €100k, and up to 17% for uninsured deposits. That's why the final Eurogroup plan is "unprofessional" to him.

And when the Cypriot finance minister goes to Moscow on Wednesday to renegotiate the terms of Russia's loan, the Russian minister will demand more transparency about the Russian accountholders in Cyprus.

If Gazprom ends up recapitalizing the Cypriot banking system and getting a gas concession in Cypriot waters, it will really be win-win-win... for Russia.

I distribute. You re-distribute. He gives your hard-earned money to lazy scroungers. -- JakeS

by Migeru (migeru at eurotrib dot com) on Mon Mar 18th, 2013 at 09:15:37 AM EST
[ Parent ]

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