Under a Directive issued by the Central Bank of Russian Federation, Cyprus has been removed from the list of countries that are characterised as “offshore zones”, with “a privileged tax regime”. As a result of this development, the opening of correspondence bank accounts from Russian banks in Cyprus banks shall not be subject to the various terms, conditions and restrictions that apply for “offshore zones”.

The removal of Cyprus from the list is a positive development and bolsters the reputation and esteem of Cyprus as an international financial centre and emphasizes the fact that Cyprus is a transparent and credible European Financial Hub.

The Central Bank also notes that the instructions prove the close cooperation between the two Central Banks over the past few years in the sector of banking supervision and expects increased investment flows from the Russian Federation to Cyprus in future. Statistically the Russian share in the inward investment to Cyprus in the year 2008 amounted to 27.4 % out of a total of EUR 2.7 billion.