Cyprus Condemned for Lax Enforcement of Sanctions Against Russia, EU Lawmakers Say

European Union lawmakers have criticized Cyprus for its failure to effectively enforce sanctions against Russia, following revelations from a recent investigation into the island nation’s role in enabling Russian wealth to flow into the West.

Criticism at European Parliament Session

During a European Parliament session in Strasbourg, officials debated the need to strengthen anti-money laundering measures and coordinate criminal penalties for sanction evasion across the EU. The session was called in response to the Cyprus Confidential investigation, which exposed how Cyprus-based financial services firms have enabled Russia’s elite, including President Vladimir Putin’s inner circle, to shelter their wealth and evade sanctions.

“We are talking about a country that is not only allowing oligarchs to violate sanctions but is also complicit in covering up these violations,” said Sophie In ’t Veld, the Parliament’s rapporteur for the Directive on the definition of criminal offences and penalties for the violation of Union restrictive measures. “The European Union is turning into a gangster’s paradise because there is complete impunity.”

EU Commission Takes Notice

Dubravka Šuica, the EU Commission’s vice-president in charge of democracy and demography, said that the commission takes any allegations of breaches of European sanctions seriously and is monitoring Cyprus’ response to the investigation.

Cyprus Pledges Investigation

Cyprus has pledged to investigate the findings, with President Nikos Christodoulides vowing to clean up the country’s financial sector. However, anti-corruption advocates have urged Cypriot authorities to take decisive action to address bad practices in the financial services sector.

Leaked Documents Reveal Russian Elite’s Use of Cyprus

The Cyprus Confidential investigation was based on leaked documents from six Cyprus-based providers and a website company, which revealed how the island nation’s financial firms have enabled Russian elite to shelter their wealth and evade sanctions. The investigation also found that several Russian clients, including billionaire oligarch Roman Abramovich, had used offshore vehicles to route millions of pounds through Cyprus.

Consequences

The Premier League and the Football Association have opened separate investigations into the findings, while authorities in Sweden have frozen assets linked to a Swedish businessman who allegedly moved large sums of money to Cyprus while owing back taxes.