Tag: Cyprus

Russia, Cyprus signs military port deal

Ties between Russia and the West have plummeted in the wake of the Ukraine crisis, but Putin said the ships allowed to dock at Cypriot ports would mostly be used in international anti-terrorism and piracy efforts.

“I don’t think this should worry anyone,” he said.

Cyprus, which is heavily dependent on Russian investment, played down Wednesday’s deal, saying Russian ships had always had access to its ports. A government source said it was simply the first time access had been spelled out in a separate accord.

Russia has sought to forge stronger ties with individual members of the European Union, including Cyprus, Hungary and Greece, after the 28-nation bloc, along with the United States, imposed cumulative sanctions on Moscow for its role in Ukraine.

Officials in Brussels fear this policy is aimed at weakening EU resolve and preventing a further tightening of sanctions.

Earlier this week Russia restructured a 2.5 billion euro ($2.8 billion) loan to Cyprus it signed in 2011, cutting the annual interest rate to 2.5 percent from 4.5 percent and the redemption period to 2018-2021.

Russia has sought Mediterranean ports for its navy to visit since Moscow lost a military maintenance base on Syria’s coast during fighting between anti-government rebels and troops loyal to President Bashar al-Assad, whom Putin has supported in the nearly four-year conflict.

Russian agency TASS said Wednesday’s deal included the possibility of Russian ships and warplanes using airports and seaports in humanitarian crises.

Long been a destination for cash from Russia, Cyprus saw capital outflows of a record $151 billion last year. U.S.-based non-profit organization Global Financial Integrity said in 2013 that illicit money flows from Russia to Cyprus amounted to at least $211.5 billion between 1994-2011. ($1 = 0.8807 euros)

Source: Maritime Executive

Russia to set up military bases in an EU state

Cyprus has offered Russia to have air and navy bases on its territory.

Cypriot president Nicos Anastasiades announced that the country is ready to host Russian aviation and naval bases. The official agreement on military cooperation between the two nations is expected be signed on February 25, 2015, according to Lenta.ru.

“There is an old [defense] agreement, which should be renewed as is. At the same time, some additional services will be provided in the same way as we do with other countries, such as, for example, with France and Germany,” Nicos Anastasiades said. “Cyprus and Russia have traditionally had good relations, and this is not subject to change.”

Cyprus’ announcement comes after Russia expressed interest in having a military base in Cyprus in late January, according to the Global Post and Greek Reporter.

Notably, Cyprus is one of the 28-member states in the EU, which have been imposing sanctions on Russia over the past year in response to the actions in Ukraine.

And just like Greece has recently caused a stir by complicating the process of extending sanctions on Russia, Cyprus, too, just voiced some opposition to the additional sanctions on Russia, adding that many EU members share that opinion.

“We want to avoid further deterioration of relations between Russia and the European Union,” the Cypriot president reportedly said.

Source: Business Insider