According to the Central Bank of the Russian Federation, there was a significant increase in investment into Russia from Cyprus during the first nine months of 2013, the latest period for which figures are available.
In the first three quarters of 2013 net inward investment from Cyprus to Russia amounted to US$ 12.9 billion, making Cyprus the second largest source of investment into Russia. The only country with a larger figure was the United Kingdom, which was boosted by the one-off TNK-BP transaction. There was a considerable gap between Cyprus and the next country, Luxembourg, with less than US$ 10 billion.
Cyprus’s investment of US$ 12.9 billion for the first three-quarters of the year is almost as large as the figure for the whole of 2011, which means that 2013 will almost certainly be a record year for investment into Russia via Cyprus since the onset of the global economic crisis in 2008.
These figures provide welcome reassurance that, despite the “bail-in” of March 2013, Cyprus continues to be the preferred route for investment into Russia.