The Absurd Times Cyprus — Nobody Gets It

Posted in Uncategorized by @honestcharlie on March 18, 2013


Kieth Tucker at gives us a view of gun control. Frankly, I’d like a set of grenades.

A story that keeps appearing but which seems opaque to everybody is this Cyprus bailout. Why would Putin be angry and complaining? After all, Russia isn’t a part of the EU, is it?

People forget. Back when we had a terrific series of bank failures, a mini-depression (all during Ronald Raygun), Russia hardly batted an eye. The reason was that The Soviet Union had an entirely different economic system. Now that they have freedom, motherhood, and apple pie, they are screwed. In effect, the EU is stealing billions of dollars from Russia. Here is how:

Published On: Mon, Mar 18th, 2013
Economy / Europe | By Christof Lehmann

Cyprus Bailout robs USD 3 Billion from Russian Banks and Corporations


TAGS EU Robs 3 Billion From Russia By Bailing Out Cyprus

Cyprus President Nicos Anastasiades. Painful but managable ?

Christof Lehmann (nsnbc).- On Saturday, the European Union (EU) and the International Monetary Fund (IMF) agreed to bail out Cyprus by granting the island nation in the Mediterranean a EUR 10 billion (USD 13 billion) loan. In return, the government of Cyprus had to agree to levy a minimum 6,75 % one-off tax on all deposits at Cypriot banks.

The taxation of the bank deposits constitute a triple theft, on the nations tax payers, on European Union tax payers who have to finance the bailout plus the subsequent debt-enslavement at the IMF, and on foreign investors like Russia, who have invested heavily in Cypriot banks. On Tuesday, the parliament of Cyprus has to vote whether the country will accept the bailout or not.

The news, that bank deposits would be levied with a minimum 6,75 % tax caused many Cypriots to rush to the banks to cash in their deposits. Over the weekend and on Monday many of the cash dispensers were emptied and did not function. Many Cypriots went to their banks today, in an attempt to salvage as much as they could. Protests are not only being heard on Cyprus but internationally.

A spokesperson for the Russian administration, Dmitry Peskov said, that Russia´s President Vladimir Putin had called the imposing a one-off levy on all bank deposits as part of the bailout deal, including the deposits of foreign investors, “unfair, unprofessional and dangerous”. Russian banks and corporations have invested heavily on Cyprus. According to several Russian news agencies and media, Russian banks had approximately USD 12 billion deposited in banks on Cyprus while Russian corporations have another USD 19 billion invested in Cypriot banks.

Also the Russian Prime Minister Dmitry Medvedev criticized the so-called bailout as a confiscation of people´s money. At a meeting of the advisory board of Vneshecombank, Medvedev said ” Quite strange and controversial decisions are being made by some EU member states. I mean, Cyprus. Frankly speaking, this looks like the confiscation of people´s money”.

Relations between the European Union and Russia have been tense after the EU and Russia failed to reach an agreement on the European Union´s Third Energy Packet. A lack of convergence between the energy security needs of the USA/Qatar, the European Union, and Russia, are the primary cause for the war in Syria. Russia has criticized the European Union, saying that the European Union´s changes in its laws regarding Russian deliveries of gas to the EU include breeches of already existing contracts and violate international law. A European Union Decision, which so to speak “robs good and well 10 % of Russian banks and corporations investments on Cyprus” is not likely to help defuse tensions between Russia and the EU.

If the bailout will be approved by the Cypriot government on Tuesday, the country will have to impose a levy of 6,75 % on deposits of less than 100,000 Euros and 9,9 % on deposits with greater amounts.

The Cypriot President Nicos Anasasiades, argued, that Cyprus had the choice between a catastrophic and disorderly bankruptcy scenario and a scenario of painful but controlled management of the crisis, and that he had chosen to recommend the latter.

Whether Cypriots will accept the fact that at lest 6,75 % of their hard earned deposits will be taken from them without causing a catastrophic and disorderly situation on the islands streets remains to be seen. Reports about sporadic protests today and about planned protests in front of the islands parliament could indicate, that the government of Cyprus could face some popular resistance.

Related articles:

Russia – E.U. Meeting in Brussels: Risk of Middle East and European War increased.

Russian Security Council Emergency Meeting as Russian Warships arrive in Syria

Have Your Say and take part in international dialog, by using the comments below.


About the Author

Christof Lehmann – Dr. Christof Lehmann is the founder and editor of nsnbc. He is a psychologist and independent political consultant on conflict and conflict resolution and a wide range of other political issues. His work with traumatized victims of conflict has led him to also pursue the work as political consultant. He is a lifelong activist for peace and justice, human rights, Palestinians rights to self-determination in Palestine, and he is working on the establishment of international institutions for the prosecution of all war crimes, also those committed by privileged nations. On 28 August 2011 he started his blog nsnbc, appalled by misrepresentations of the aggression against Libya and Syria. In March 2013 he turned nsnbc into a daily, independent, international on-line newspaper.

Posted By Blogger to The Absurd Times at 3/18/2013 12:56:00 PM


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