Putin takes care of 20 billion euros in deposits in Cyprus

The above comment was made during Mr. Putin’s emergency meeting with the cabinet and economic advisory group yesterday (March 18).

Russia’s second largest bank alone – VTB has 10.4 billion euros (13.5 billion USD) in Cyprus through its branches.

President Putin said that Cyprus’ deposit tax is `dangerous`.

As Cyprus tourism boomed, thousands of Russians flocked here due to the decades-long relationship between the two countries.

Cyprus’ move has been widely criticized due to concerns that it will create a precedent with other European countries.

In a report, Barclays also said the tax was a `bad omen` of the bailout package.

Last weekend, the Republic of Cyprus, eurozone officials, the International Monetary Fund (IMF) and the European Central Bank (ECB) agreed to a 10 billion euro rescue package for the country’s financial system.

Cyprus is the fifth country in the eurozone after Greece, Portugal, Ireland and Spain that needs aid.

The Cyprus Parliament should have voted on this request on March 18.

Thuy Linh (according to Telegraph/AFP)