No just Russian billionaires keep money in Cyprus. Many Russians still don’t trust the banks in Russia. There was massive inflation during the 90s. Monthly pension payments were not enough to buy one loaf of bread. When the currency was converted from Soviet money to Russian, there was a limit. A lot of people lost a lot of money.
Then in 1998, Russia defaulted on international loans. Many banks went bankrupt. Many people lost their savings.
In short, Russians who have money don’t trust the Russian banking system and prefer to put it where they believe it’s safe. Cyprus had a reputation for having a safe, stable banking system. Russians want to get as much money out of the country as possible because they are still uncertain of the future here.
Many Russians are also buying property in the West. I know a lot of intelligent, well educated Russians whose goal it is to move to the West, where they perceive life to be better and more stable.
Thanks. I’ve been getting the feeling that we’re being manipulated (again) by the media. The Russians have EVERY REASON not to trust their own banks, given their recent history. As to whether there are crooks putting money into Cypress...probably, as to whether honest Russians are doing the same...definitely. So, what did they do wrong?