Russian Prime Minister Dmitry Medvedev has reacted to the Cypriot bailout deal by labelling it as theft. The Kremlin is considering freezing German assets in Russia in retaliation for Russian losses in Cyprus banks.
“The stealing of what has already been stolen continues,” is how Medvedev described the Cyprus bailout deal which imposes a sweeping haircut of around 30 percent on bank deposits in excess of €100,000 in two major banks. Nevertheless Russian President Vladimir Putin is willing to support efforts aimed at overcoming the Cypriot crisis.
According to the Telegraph the Kremlin is considering freezing German assets in Russia as payback for the bailout deal.
Germany has put pressure on Nicosia throughout the last week, insisting on terms which will effectively end the importance of the Cyprus banking sector.