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Russians Say Cyprus Restructuring Offer Initiated, but Not On Table

The Russian news agency ITAR-TASS says that there is not a restructuring offer for Cyprus on the table, however an offer has been “initiated.”

Russia’s Gazprom has not offered the Republic of Cyprus financial assistance in restructuring the country’s banks in exchange for the right to gas production in the exclusive economic zone of Cyprus. Gazprombank initiated this offer, a spokesman for the gas giant told Tass.

Itar-Tass has failed to get an immediate commentary from Gazprombank as of yet.

Gazprom is the parent company of Gazprombank, the third largest bank in Russia which also owns a subsidiary in Cyprus.
Yesterday local media reported that russian energy giant Gazprom has offered the Republic of Cyprus a plan in which the company will undertake the restructuring of the country’s banks in exchange for exploration rights for natural gas in Cyprus’’ exclusive economic zone
According to the reported proposal Gazprom would fund the restructuring of the country’s crippled financial institutions in exchange for substantial control over the country’s gas resources while Cyprus won’t need to take the harsh bailout package offered by the EU.
EU offered a 10 billion euros rescue package to Cyprus with the condition of raising 5.8 billion euros ($7.5 billion) by taking a piece of every bank account in Cyprus. The originally proposed levies on deposits are 9.9 percent for accounts exceeding 100,000 euros and 6.7 percent on anything below that. However, the latest Eurogroup decided not to tax accounts uder 100,000 euros.
Vladimir Putin, Russia’s president, said the measure would be “unfair, unprofessional and dangerous”. His prime minister, Dmitry Medvedev, said the move “was just like a confiscation of someone else’s money”. He warned Russia would have to “correct” its relationship with Cyprus if the measures were passed.
Cypriot President Nicos Anstasiades is not willing to discuss the Russian’s offer according to Newsit who cited an anonymous source close to the President.
“The president is not going to discuss this plan because he wants a solution that will come from the EU,” said the anonymous source.

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