UK and Cyprus agree to crack down on illicit Russian money

The UK and Cyprus have agreed a partnership to crack down on organised crime and illicit Russian money following the Prime Minister’s visit to Nicosia on Tuesday.

Under an agreement reached by Sir Keir Starmer and Cypriot president Nikos Christodoulides, the UK will create a new unit to share expertise and intelligence with Cyprus to help better enforce sanctions against Russia.

“Haven”

Cyprus has previously been regarded as a haven for Russian oligarchs to keep their money, but in recent years has made progress in reducing the quantity of Russian money in its banks.

Since coming to power in 2023, Mr Christodoulides has sought to enforce sanctions more effectively – and Cyprus has so far frozen £1.5 billion of Russian assets since the full-scale invasion of Ukraine.

The country also joined the UK-led “Shadow Fleet” initiative in July, which seeks to stop vessels used by Russia in an attempt to evade sanctions on its oil trade.

Sir Keir said the UK and Cyprus were together “stemming the flow of illicit finance through Europe to starve Putin’s war machine and protect global stability”.

Plan for Change

He said: “This Government is delivering on our Plan for Change, which is built on strong foundations, including our national security.

“Only by working with like-minded partners can we protect our interests both at home and abroad.”

Sir Keir’s visit to Nicosia, the first time a British prime minister has held a bilateral meeting with a Cypriot president since 1971, also saw the two countries pledge to work more closely on tackling organised crime.

The National Crime Agency will provide training to Cypriot law enforcement teams on tackling financial crime, while HMRC will train Cypriot customs officers to help crack down on illegal tobacco smuggling.