Cyprus Banks: Russian investors aren’t the only ones burned by Cyprus’s banking troubles. Ukrainians also kept billions in Cypriot accounts—some are now considering Swiss accounts.
The little island of Cyprus was the largest foreign investor in both Russia and Ukraine before the collapse and restructuring of its banks.
Many wealthy Russians and Ukrainians deposited their money in Cypriot banks to avoid higher fees at home; they would then reinvest it from their Cypriot accounts into their businesses back in Russia and Ukraine respectively.
In 2012, $3.92 billion was invested in Ukraine from Cyprus—that is 65 percent of total foreign investments in Ukraine, according to the Ukrainian state statistics website.
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