The US and UK have placed 13 Cypriot entities and individuals on sanctions lists for allegedly enabling Russian oligarchs but this sparked an alarming number of layoffs and hundreds of employees remaining unpaid.
Because bank accounts and other assets belonging to the alleged “financial fixers” of Roman Abramovich and Alisher Usmanov – close allies of Vladimir Putin – are frozen since mid-April. The measures aim at dismantling the financial networks of the two oligarchs.
The some 400 affected employees in Cyprus are those of Limassol-based corporate service provider Meritservus and Nicosia-based law firm Chistodoulos G. Vassiliades and Co.LLC.
Meritservus has been sanctioned by the UK for its alleged collaboration with Roman Abramovich, while the well-known Nicosia lawyer’s firm has been included on both the UK and US lists on the grounds of providing services to Russian oligarch Alistair Usmanov.
Both big firms are unable to carry out financial transactions as the commercial banks in Cyprus have ‘blocked’ their accounts.
Cyprus Bar Association officials have sent the message that the State needs to take action to address the immediate problem.
At the same time, they are also considering the scenario of the escalation of sanctions which is to affect dramatically the stability of the island’s service industry.
