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Russian capital outflow amounts to €2.44 billion over two years

February 28, 2019 at 8:53am
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Russian capital outflow from the banking system of Cyprus continues and amounts withdrawn from deposits increase every month. Within one year, deposits from third countries fell by €1 billion, according to Central Bank of Cyprus data.

The data also shows that there is a steady reduction in deposits from Russia. Over the last two years the reduction is even greater and has reached €2.44 billion. This downward presence of Russian depositors in Cypriot banks seems to be related to international efforts towards combatting money laundering within the EU.

The Central Bank yesterday also released data for the first month of the year, according to which total deposits in January 2019 showed a net reduction of €342.7 million, compared with a net increase of €392.7 million in December 2018. The annual rate of change was 4.1%, compared to 3.7% in December 2018.

The balance of total deposits in January 2019 reached €47.5 billion. Because Russian customers close bank accounts in Cyprus, total deposits decreased by €1.06 billion within one year, with a net reduction of   €2.44 billion compared to two years ago.

In addition, compared to the end of 2013 – the year in which the haircut on deposits took place – Russian deposits in the banking system of Cyprus were more than double.

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Deposits in the Cyprus banking system declined by €343 million in January