The new Cypriot anti-money laundering rules and the U.S. sanctions against Russia ad its high-profile citizens, are having their impact by driving money away from the Cypriot haven.
“Russians are downsizing in Cyprus,” said Kyriakos Iordanou, general manager of the Institute of Certified Public Accountants of Cyprus, whose members have clients from the country.
Russian-related business in Cyprus generated gross income of around 2.2 billion euros in 2017, about 11 percent of economic output, down from an estimated peak of about 14 percent in 2012, according to Fiona Mullen, director of Nicosia-based Sapienta Economics Ltd.
“Tourism is now bigger than banking, so what you see is a slightly different mix of Russians,” she said. “There is still the old money, but you also see a lot of regular middle-class Russians just coming for a holiday.”