Cyprus: Medvedev could cut Russia's euro reserves

If Cyprus situation threatens Russian interests

21 March, 11:24

(ANSAmed) - MOSCOW, March 21 - Russian Prime Minister Dmitry Medvedev is toying with the idea of reducing his country's share of euro reserves if the Cypriot situation threatens Russia's interests. Medvedev made the comments at a 'co-operation' meeting with EU Commission delegates that opened Thursday in Moscow and is led by European Commission chief José Manuel Barroso.

Roughly 41%-42% of Moscow's reserves are in euro.

Speaking about the possibility of a weighty savings levy in Cyprus in exchange for an EU rescue fund, Medvedev said: "if it's possible in Cyprus, why wouldn't it happen in Spain, Italy or any other country in financial turmoil? Tomorrow they could be confiscating whole economies." "I think the Eurogroup could consider a plan for Cyprus which involves all interested parties, including Russia", he said in his opening speech at the Moscow meeting.

José Barroso is similarly rankled, but while he called the Cypriot situation "very worrying" he is also hopeful that a "solution can be found." Meanwhile Finance Minister Michalis Sarris told delegates that Cyprus wants Moscow to extend a 2.5 billion euro loan to five years, cutting taxes from 4.5 to 2.5%. (ANSAmed).

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