Gazprom Offers Cyprus Restructuring Deal to Avoid EU Bailout

Gazprom Cyprus Bailout
Russian energy giant Gazprom has offered the Republic of Cyprus a plan in which the company will undertake the restructuring of the country’s banks in exchange for exploration rights for natural gas in Cyprus’’ exclusive economic zone, local media reported.

Representatives of the Russian company submitted the proposal to the office of Cypriot President Nicos Anastasiades on Sunday evening, Sigma TV reported.

The proposal states that Gazprom will fund the restructuring of the country’s crippled financial institutions in exchange for substantial control over the country’s gas resources while Cyprus won’t need to take the harsh bailout package offered by the EU.

EU offered a 10 billion euros rescue package to Cyprus with the condition of raising 5.8 billion euros ($7.5 billion) by taking a piece of every bank account in Cyprus. The originally proposed levies on deposits are 9.9 percent for acounts exceeding 100,000 euros and 6.7 percent on anything below that.

Cypriot President Nicos Anstasiades is not willing to discuss the Russian’s offer according to Newsit who cited an anonymous source close to the President.

“The president is not going to discuss this plan because he wants a solution that will come from the EU,” said the anonymous source.

Shortly after the rejection of the Gazprom proposal, Anatoly Aksakov, the head of the Association of Regional Banks of Russia and a member of the Board of the Central Bank of Russia spoke to Interfax describing the country’s banking system as “not trustworthy” and advised Russian citizens “to withdraw their deposits from Cyprus.”

“Our belief, that Cyprus is a place where it is convenient for people to keep their money, will be undermined if the Cypriot parliament passes the decision of Eurogroup» said Aksanov.

Cyprus’s Parliament has postponed its decision on whether it will go along with a tax of up to 9.9 percent on the savings of bank account holders as demanded by international lenders in return for a 10 billion euros ($13 billion) bailout to keep the island country’s economy from collapsing. The vote that was due to take place on March 17 was pushed back to Monday, a holiday in Greece and Cyprus, when banks would be closed in any case.

Gazprom is the largest extractor of natural gas in the world and the largest Russian company.


  1. There is a certain attractiveness to the deal. If Russia bough the gas you can bet Turkey wouldn’t be able to push them around in Greek territorial waters like they do us. Nato has proven worthless to Greece post communism . Its nowhere to be found on FYROM issue (and US constantly supports Turkish side in disputes)

    Russia is feeling hemmed in by US lately. Putin clearly doesn’t trust the US or UK (and frankly given their silence on FYROM neither do I an longer) I’m sure the Russians would also be more than happy to have a place to park their nuclear subs in the aegean. No one can squat when Russia still has thousands of ICBMs.

    Interesting proposal. Its all in the details but its well worth considering. Since our alleged collude with our enemies, we should be considering new allies.

  2. An entire country sold to the banks and then…….to the Russian mafia. Wonderful news.

  3. It depends how much the gas is worth. We mustn’t lose our aliance with Russia however. Strategically, Russia is better positioned geographically than the US.

  4. Anastasiades is pro-EU, and the EU know this. He is close with Merkel, so they won’t take this seriously. If this were our previous communist government then they would accept the Russian deal in seconds, but I don’t support them and their overspending. They put us in this mess.



  6. This is true. Germany has plans to give a lessons to Russians by use cyprus for an examination. But that will show to all the world what Germany is. Let see if Germany at last will win. Who will smile last??

  7. So nobody find out why Germany wants the Russians out? Because there is gas and energy. That is why Russians will loose the game… The Russians they are waiting the last min to ask for gas? Will trust them… Ho ho stupid Russians. The gas belongs to Germany.

  8. It’s a good offer. Better than the EU offer. Cyprus should accept. Russia cares about cyprus. The imf and eu don’t care!

  9. You know what percentage Cyprus will get in this gas exploration… Zilch

    Well Greeks, you do love the Russians. They are more arrogant than Greeks.

  10. I’m the type to swallow my cum ‘fore I swallow my pride.

    No gus exploration

  11. I support Republic of Macedonia, my fellow Slavic speaking Macedonians.

    These Greeks will pay for their crimes

  12. Skops will pay for their theft of Greece’s Macedonia. Skops are the most cowardly and crooked people. Unfortunately Albanians will beat Greece to the justice.

  13. You cant be serious. As bad as the deal is they are getting from Europe (disgusting to say the least), the offer from this Russian company is much, much worse. Essentially stealing natural resources. Never sell your assets.

  14. Anybody care to put a figure on how much Cyprus has benefited from the EU up until now, and exactly where all that cash has gone?

  15. As if they are gonna get any percentage at all if they go with the EU plan. The “bailout” is designed explicitly to never be paid off. It relies on never ending crisis. With the end game being asset stripping.

  16. They should honestly just wipe out the bond holders entirely and take the bank national with zero compensation. Sorry, capitalism failed, time to take the toys away.

  17. It’s remarkable to me as an Israeli that the Eurozone is so stingy with Greece and Cyprus while always coming up with few extra millions or hundreds of millions for the “Palestinian Authority” when Abu Mazen can’t pay his bloated civil service [including terrorists in uniform].

    As someone said, Obama is buddy-buddy with Erdogan. But Erdogan has made it very clear that he doesn’t like us. In fact, long before he became PM of Turkey he was writing against Jews and others whom he considered enemies [see MASKOMYA]. That didn’t matter to Obama who tells Americans he’s our great friend yet he says that Erdogan is the foreign leader whom he is closest to and with whom he communicates the most. Obama is coming here to Jerusalem tomorrow but most people are not eager to have him. Besides our not liking his policies, every time a foreign leader comes here —whoever it is, Obama or anybody else– our lives are thoroughly disrupted. You can’t travel in the center of the city. You can’t drive on certain streets. One of the TV stations interviewed people in the Mahaneh Yehudah market and everybody complained about the visit. The merchants in the market complained that he was coming just before our Passover holiday when they usually do a lot of their business. But it would be difficult for people to come to to the market this year.

    As to US & NATO policy towards Turkey and its harassment of oil and gas exploration in Greek territorial waters, it’s hard for me to understand why the Europeans, the EU at least, don’t forcefully support Greek & Cypriot oil & gas development, since if developed, they would then have a source of oil and gas within the EU.