Cyprus will certainly suffer consequences now that the Big Four accountancy firms PwC, KPMG and EY have cut ties with their operations in Russia and Belarus in response to the ongoing invasion of Ukraine.
But just how extensive these consequences will be is the big question that none seems able to answer at the moment, Philenews reported on Wednesday.
Insiders said prompt teleconferences of company executives began the moment sanctions against Russia were imposed to assess the situation and impact on their turnover and clientele here in Cyprus.
One also said it is not only the harshness of sanctions at stake but also the effects of the capital controls imposed by the Russian authorities on the export of funds.
The capital controls affect remittances for payments that can be made by companies from Russia to other countries, including Cyprus.
And this is an additional measure to the harsh one of exclusion of certain banks from the Swift system – a move that blocks transactions with companies or individuals.