Russian Treasury Unable to Meet Its Financial Obligations. All government agencies see asset freeze in Cyprus-Prime Minister Medvedev

InvestmentWatch

Interesting interview by Medvedev today who admitted that most Russian government agencies use Cyprus for it’s financial transactions.

A few points here:

-How corrupt does a country have to be for its government agencies to use a tax haven for financial transactions?

-From latest reports, the Cypriot banks might open on March 26th at the earliest. That’s two weeks after being shut down. That’s two weeks of unmet financial obligations, ie government employee salaries, public works financing, unpaid pensions etc etc…Expect unrest on the streets of Moscow

-The EU/Germany are certainly aware that 95% of all Russian money goes through the Cypriot banks. Certainly they were well aware of the consequences this would lead to. Is this the first salvo in the new world war??

http://www.newsru.com/finance/21mar2013/cyprusmedvedev.html

Russia complains government accounts blocked in Cyprus

Russian Prime Minister Dmitry Medvedev complained Thursday that accounts of Russian government agencies in Cyprus had been blocked as Cypriot Finance Minister Michalis Sarris was set to resume talks in Moscow to secure aid.

In comments released early Thursday, Medvedev warned that Russia would take a “firm” stand on Cyprus because the accounts of governmment structures had been blocked on the island.

http://www.globalpost.com/dispatch/news/afp/130321/russia-complains-government-accounts-blocked-cyprus

Cyprus ATMs Low On Cash, Credit Card Payments Refused; Medvedev Compares Europe To USSR