After Russia invaded Ukraine in 2022, Cyprus' banks saw a big drop in business with Russian and Ukrainian companies. They lost around 13,000 clients and 35,000 accounts, totaling about 2 billion euros. This happened because of sanctions from the U.N., EU, U.S., and UK against Russia.

The number of Russian clients in Cypriot banks almost halved, dropping from 0.69% to 0.35%. Russian deposits also fell from 2.21% to 1.53% of the banks' total. This change shows a big shift from the past, when Cyprus was known for its lax rules that attracted rich Russian businesspeople.

Cyprus' financial crisis in 2013 led to a turnaround. By 2023, Russian and Ukrainian clients and deposits fell by 90% and 83% respectively. Overall, Cypriot banks ended ties with over 72,000 clients and closed nearly 161,000 accounts, worth about 42 billion euros.

Marios Skandalis, from the Association of Cypriot Banks, said Cypriot banks are among the few worldwide that strictly follow rules on goods with both civilian and military uses. They check transactions from 15 Russia-friendly countries daily against U.S., UK, EU, and U.N. sanctions lists. Any deals with people or their close associates who are sanctioned are stopped.

Cyprus Banks: Fewer Russian and Ukrainian Clients After Sanctions

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