Only for the first three months of 2009, Russians have invested ?2 billion in Cyprian banks, as announced by Interfax agency. According to a report of the Russian Central Bank for 2008, Russians have invested in Cyprian banks over ?22 billion. ?18 out of those have been invested in October—in other words in the first month of the financial crisis.

In an interview for Interfax, the President of the Russian Bankers Union said that as financial products the Cyprian banks are as attractive as the ones in Luxemburg – they offer convenient tax reliefs and at the same time they work under strict international laws. “In Cyprus, as opposed to other countries, there is a lot of budget excess,” says Edward Savoulyak – an investments advisor and reminds that first, in Cyprus there is no danger for deposits and second, the government is guaranteeing up to ?100 000. In Russia this guarantee is only ?15 500.

Cyprus is not attractive only because of its banks. Kathimerini newspaper claims that Russians are also attracted by the real estate opportunities. Last year, 30% of all real estate sales were done with Russians. For the first three months of 2009, this percentage has increased to 40% and this way Russia is becoming the biggest foreign real estate investor on the island. Also, Russian tourists have increased because last year 31% of the issued visas for Cyprus were given to Russians.