Cyprus faced mounting criticism in the European Parliament during discussions on the findings of the Cyprus Confidential investigation, with a focus on the need to prevent the circumvention of sanctions against Russia and the legitimization of proceeds from illegal activities within the EU.
In several instances, Cyprus was disparaged, drawing comparisons to a money vault and a plot straight out of a Netflix series.
Members of the European Parliament expressed their discontent over the new scandals involving the country, emphasizing that we are in the 11th set of sanctions against Russia, with preparations underway for the 12th, constituting the only peaceful measures taken amidst ongoing hostilities.
The majority of MEPs called for measures to ensure that sanctions are enforced and that oligarchs cannot legitimize gains from illegal activities within the EU.
They also called for the establishment of a supervisory mechanism in the EU to combat corruption and comprehensive investigations into the revelations from the Cyprus Confidential investigation. Some even suggested punitive actions against Cyprus.
In her introductory speech on behalf of the Council, Spanish Minister of Foreign Affairs Angeles Moreno Bau stressed the importance of combatting the legitimization of proceeds from illegal activities.
Referring to the Cyprus Confidential investigation, she expressed confidence that the Republic of Cyprus has initiated national-level investigations.
“What I can say on behalf of the Council is that the legislative framework under discussion will pose a significant obstacle to criminal activities,” she added.
Dubravka Suica, Vice President of the European Commission, noted that the investigations had led to serious allegations of sanctions evasion, money laundering in Cyprus, and complaints of tax avoidance and evasion.
She stated that they are in contact with Cypriot authorities who are investigating the allegations. “One and a half years into the war against Ukraine, we must remain vigilant against any attempts to circumvent EU sanctions that could weaken the EU’s stance,” she emphasized.
“We’ve had 11 sets of sanctions,” she reminded and mentioned that the Commission has proposed the 12th set for December.
“We have some of the strictest rules in the world against money laundering, and we’re working to strengthen our arsenal. We shouldn’t be lenient. These rules must be properly enforced by member states to protect Europe’s financial system.”
Sophie in ‘t Veld from the Netherlands pointed out that national authorities are often complicit in corruption, as seen in Cyprus and Malta. Due to the Commission’s lax approach, she said, “the EU becomes a paradise for gangsters due to impunity. We are working on a proposal to prevent sanctions circumvention.”
Belgian MEP Saskia Bricmont stated emphatically, “A safe deposit box for Russian oligarchs, a sanctions evasion point, and a system for golden visas. This is not a Netflix scenario; it’s what Cyprus Confidential reports about Cyprus, an EU member.”
She underscored that at a time when Ukraine is resisting, some are trying to help Putin and his allies evade sanctions. “When criminals can slip through the EU’s net, bypassing sanctions, it means there are accomplices. It’s a threat to the EU. Sanctions are the only weapon against Putin,” she said, concluding it is unforgivable.
Finnish MEP Pirkko Ruohonen–Lerner noted that “Cyprus’s financial sector is awash with Russian money. We’re talking about billions parked in Cyprus. It’s also known that Cyprus grants golden visas.”
Cypriot MEP Lukas Fourlas stressed that the allegations from Cyprus Confidential must be “thoroughly investigated, and if violations are found, anyone should be brought to justice.”
He also accused Cyprus of running a program that was abolished in November 2020, while it remains active in other European countries, and called for swift accountability to restore Cyprus’s reputation.
George Georgiou, another Cypriot MEP, mentioned that Presidents, Prime Ministers, and other officials of member states have been involved in scandals over time.
“Unfortunately, even the former President of my country, Cyprus, along with a handful of accomplices. However, our people are not thieves. They are honest individuals who find it hard to make ends meet and are angry about what they hear,” he said, emphasizing the issue of impunity.
MEP Eleni Stavrou called for full transparency. “The competent authorities, at the national and European levels, must thoroughly investigate the allegations and take appropriate action,” she said.
Despite traditional ties with Russia, she pointed out that the Republic of Cyprus immediately supported all sanctions against it, unlike other much more powerful EU member states. “We did so because, for 49 years, we have remained divided due to the Turkish invasion,” she said, also calling for similar sanctions against Turkey.
Lastly, MEP Dimitris Papadakis spoke of the few who exploited loopholes for personal gain, disregarding their country’s reputation, and acting with a sense of impunity.
“Unfortunately, the negative association with the name of my country has been tainted by these few and adds to the negative references to Cyprus following the Panama Papers, golden passports, and Pegasus,” he said.
