Cypriot President Seeks Foreign Assistance to Investigate Sanctions Evasion Allegations Against Russian Oligarchs

Overview

• Cypriot President Nikos Christodoulides reaches out to a ’third country’ for help in investigating allegations of sanctions evasion involving Russian oligarchs and Cypriot financial service providers.
• Cyprus faces potential damage to its reputation and foreign investment if allegations are true.

Allegations and Investigations

• Multiple investigations underway to probe sanctions evasions.
• Russian oligarchs allegedly used complex networks of companies and trusts, including Cyprus-based lawyers and accountants, to move funds and circumvent sanctions related to Ukraine conflict.
• Leaked documents published by the International Consortium of Investigative Journalists implicate Cypriot firms in helping Russian oligarchs evade sanctions.

President’s Response

• Christodoulides vows a “zero tolerance for corruption” approach.
• Foreign experts will be brought in to assist in investigations.
• Plans to strengthen the police’s financial crimes unit with additional experts.
• Commitment to banking sector reforms since the 2013 financial crisis.
• Cyprus attracting investment from Middle Eastern countries in various sectors.

Humanitarian Corridor and Peace Talks

• President Christodoulides addresses proposal for a humanitarian corridor to Gaza.
• UN Secretary-General Antonio Guterres to name new envoy for renewed peace talks to reunify ethnically divided Cyprus since 2017.