After the Cypriot parliament refused to approve the EU-sponsored anti-crisis programme, according to which a special tax should be imposed on savings kept in the island's banks, European experts warned against a possible bailout. Many said as well that only Russia, which has $526 billion in savings, could prevent a financial catastrophe.
"Will Moscow save Cyprus?" or "Will Russia buy its own island in the Mediterranean?" - such questions were asked by German media. "It would be a successful move for Russia to save the Cypriot economy. It would also be a good way out for the Russian government, which was shocked by the European anti-crisis plan," Die Zeit wrote. Der Spiegel expressed a belief that Moscow would provide Cyprus with the necessary funds, even though Russia was outraged by the Bolshevik-style anti-crisis plan approved by the Cypriot government and the Troika.
However, the hopes of the Cypriots did not come true. Russian minister of finance Anton Siluanov explained why Russia will not save the Cypriot economy in plain words - the country is simply not interested in it. It seems, however, that Russian has at least some interest in Cyprus, but the island's authorities could probably not suggest an appropriate agreement.
It seems that Russia is being blackmailed. First the EU demands a tax on savings, then the Cypriot government rejects the Troika-sponsored plan and sends a message to Russia - intervene or your money will be lost. The reaction of Russia was probably unpleasant for the European bodies.
Apparently, Cyprus will have to make the sacrifice in order to find a way out of the crisis. The Troika seems uncompromising and not ready to change its position on the matter. German Chancellor Angela Merkel, who traditionally plays a major role in the EU's economic policy, demands that Cyprus restructure its banking system. In other words the Bolshevik-style programme is back on table. Whether it will be adopted or not will be decided by the Cypriot lawmakers soon.
By Orkhan Sattarov, the head of the European office of Vestnik Kavkaza
