This was not a good weekend for Russian billionaires (Cyprus)

[^_^ 5,021]

This was not a good weekend for Russian billionaires ... all the uninsured depositors (read: Russian plutocrats) at Cyprus’s two largest banks are going to be hit much, much harder than they feared they might be when the Cyprus crisis first erupted last week.

Back then — a long, long week ago — Cypriot president Nicos Anastasiades stood firm: there was no way he would allow uninsured depositors to lose more than 10% of their money. What a difference a week makes: now, if your uninsured deposits are at the Bank of Cyprus, you’re probably going to lose about 40% And if they’re at Laiki, you’re going to lose everything.

The agreement between the Cypriot government and the Troika of the EU, IMF, and ECB is a bold and brutal geopolitical power-play.

...

In the Europe vs Russia poker game, the Europeans have played the most aggressive move they can, essentially forcing Russian depositors to contribute maximally to the bailout against their will. If this is how the game ends, it’s an unambiguous loss for Russia, and a win for the EU.

...

The hit to Cyprus’s GDP is going to be so enormous that staying in the euro over the long term, absent another round or two of massive debt relief, is going to be extremely difficult.

...

Cyprus’s economy is going to suffer greatly over the next few years, and its citizens are going to blame Europe for their woes; it’s entirely possible that they will voluntarily leave the euro, if the alternative is negative economic growth as far as the eye can see, along with a massively overvalued currency. If and when those rumblings start appearing, expect the Russians to start being extremely nice to the Cypriots all over again.

http://blogs.reuters.com/felix-salmon/2013/03/25/cyprus-its-not-over-yet/

[PalestineMyHeart 1,897]

I thought your thread was about this guy:

Putin foe, exiled Russian oligarch found dead in UK home, family says

http://www.cnn.com/2013/03/23/world/berezovsky-death/index.html

[Karee 4,191]

Apparently not.

Oligarch who angered Putin: Rise and fall of Boris Berezovsky

(CNN) -- The colorful Boris Berezovsky, who died in unexplained circumstances over the weekend at a country estate south of London, was one of the Russia oligarchs who made fortunes following the breakup of the former USSR. But by the time of his death the 67-year-old was reportedly in financial difficulties after he was ordered to pay a massive divorce settlement to his ex-wife as well as legal costs following the loss of a $6.5 billion lawsuit against fellow oligarch Roman Abramovich last year.

His high-stakes later years were a far cry from his earlier career as a Moscow math professor and systems analyst who switched to more lucrative jobs in post-Soviet Russia, said CNN's Jill Dougherty, who interviewed him many times.

Berezovsky went on to sell cars "at a time when that was a luxury," she said.

"There were a lot of people who wanted to buy them, and he parlayed that -- as so many of these oligarchs did -- into something much, much bigger."

While Berezovsky made a good portion of his money from luxury car sales, his wealth and political influence skyrocketed when he bought into Russian media.

Berezovsky: Loved and hated in Russia <a name="em2"> Battle of the Russian billionaires He invested in the Moscow Independent Broadcasting Corp., which -- with TBS as a partner -- founded Moscow's first independent television station, TV-6.

Under President Boris Yeltsin, the Russian Federation's first president from 1991 to 1999, "there were really no rules governing anything," Dougherty said.

Businessmen who came to be known as oligarchs amassed massive wealth and political influence in the 1990s during the privatization of Russia following the fall of the Soviet Union.

Those like Berezovsky wound up lending the fledgling Russian government money "when it was desperate for money," Dougherty said. "These guys picked up companies on the cheap -- for pennies on the dollar."

A year or two later, the companies were worth much more, and the owners became wealthy.

In return for backing Yeltsin, Berezovsky gained political influence within the Kremlin. He later backed Vladimir Putin for president, pouring money into the latter's political party.

But after he was elected, Putin saw that the oligarchs had the potential to gain too much political power and moved to thwart them, Dougherty said.

It has been widely reported that Putin resented the meddling of the oligarchs, particularly Berezovsky.

Berezovsky did not have an easy time of it as an oligarch. "There were two attempts on his life," said Stuart Loory, a former Turner Broadcasting System executive vice president and a former consultant to Berezovsky.

"One at his country home outside Moscow in a gated community. Somebody planted a bomb in his car and, fortunately, it didn't work very well. And the other was when he was leaving his club and there was a car bomb in the car and his driver was killed and he escaped without injury."

Within months of Putin's election in 2000, the government began trying to collect on tax claims against the oligarchs, including Berezovsky, who fled to Britain.

Berezovsky began agitating from Britain against Putin, calling for a coup to oust the Russian president.

In 2003, as Russia was seeking his return, Berezovsky was granted political asylum by British authorities after they realized he was wanted on political grounds, not criminal, according to published reports at the time. The case strained relations between Moscow and London.

Berezovsky was convicted of fraud and tax evasion in absentia by a Russian court in 2007. He also accused Russia of trying to assassinate him, and eventually befriended Alexander Litvinenko, the FSB (the KGB's successor) agent who claimed to have been sent to kill him.

He admitted that he had made a lot of mistakes, asked forgiveness for the mistakes and asked Putin to let him return home.

Putin spokesman Dmitry Peskov Litvinenko himself died at a London hospital November 23, 2006, from a massive dose of the radioactive material polonium-210. In a deathbed statement he blamed Putin for his death, something the Kremlin strongly denied.

Berezovsky later won libel damages in London over allegations that he was involved in Litvinenko's death, which were broadcast April 1, 2007, on RTR's news program Vesti Nedeli, or News of the Week.

But he is believed to have been in serious financial difficulties after running up huge legal fees in recent years.

In 2011 he paid out what was reported to have been Britain's biggest-ever divorce settlement to ex-wife Galina Besharova. The Daily Telegraph said the settlement was worth up to £220 million ($330 million).

And Berezovsky made headlines the following year after losing what was called one of the most expensive private lawsuits in history against Abramovich, a former friend and ally.

Berezovsky sued Abramovich, owner of Chelsea Football Club, for $5.1 billion, alleging that he was forced to sell his stake in the Russian oil company Sibneft for a fraction of its true value.

The judge called Berezovsky's testimony unreliable and, at points, dishonest.

Analysts put the price tag for legal fees alone at more than $250 million spent between the two sides, which Berezovsky was ordered to pay.

Berezovsky was this year reported to be in serious financial difficulties; last week he sold an Andy Warhol screen print entitled "Red Lenin" for $200,000 and the mansion where he died was reported to be owned by his ex-wife.

As speculation swirled about the cause of his death, Damian Kudriavtsev, a friend of Berezovsky, said Sunday that his friend was unhappy and was in financial trouble, but wouldn't have harmed himself.

Berezovsky, he said, had always hoped to return to Russia someday.

About two months ago, he sent a letter to Putin asking permission to return to Russia, Putin spokesman Dmitry Peskov said. "He admitted that he had made a lot of mistakes, asked forgiveness for the mistakes and asked Putin to let him return home," Peskov said, according to a duty officer with the presidential press service.

It's unknown whether Putin responded to the letter, but Berezovsky did not return.

Source:

http://edition.cnn.com/2013/03/25/world/europe/berezovsky-profile/index.html?hpt=hp_c1

[^_^ 5,021]

I thought your thread was about this guy:

Putin foe, exiled Russian oligarch found dead in UK home, family says

http://www.cnn.com/2013/03/23/world/berezovsky-death/index.html

That's why I put Cyprus in parentheses.

[SMR 368]

The movie "Oligarch" is heavily based on the life of Beryozovsky. I recommend it.

You have to have serious balls to piss these guys off. They are the kind of guys that will never let you win at their expense.

[^_^ 5,021]

You have to have serious balls to piss these guys off. They are the kind of guys that will never let you win at their expense.

Can they really take on the EU? I doubt it. You don't get that powerful and that rich by not knowing how to pick your fights.

[PalestineMyHeart 1,897]

[quote name=' timestamp='1364218926' post='6076675]

That's why I put Cyprus in parentheses.

Yeah I get that. I was saying at first glance I thought this was about the Russian oligarch.

Edited March 25, 2013 by wife_of_mahmoud

[B & G 200]

[quote name=' timestamp='1364217829' post='6076648]

This was not a good weekend for Russian billionaires ... all the uninsured depositors (read: Russian plutocrats) at Cyprus’s two largest banks are going to be hit much, much harder than they feared they might be when the Cyprus crisis first erupted last week.

Back then — a long, long week ago — Cypriot president Nicos Anastasiades stood firm: there was no way he would allow uninsured depositors to lose more than 10% of their money. What a difference a week makes: now, if your uninsured deposits are at the Bank of Cyprus, you’re probably going to lose about 40% And if they’re at Laiki, you’re going to lose everything.

The agreement between the Cypriot government and the Troika of the EU, IMF, and ECB is a bold and brutal geopolitical power-play.

...

In the Europe vs Russia poker game, the Europeans have played the most aggressive move they can, essentially forcing Russian depositors to contribute maximally to the bailout against their will. If this is how the game ends, it’s an unambiguous loss for Russia, and a win for the EU.

...

The hit to Cyprus’s GDP is going to be so enormous that staying in the euro over the long term, absent another round or two of massive debt relief, is going to be extremely difficult.

...

Cyprus’s economy is going to suffer greatly over the next few years, and its citizens are going to blame Europe for their woes; it’s entirely possible that they will voluntarily leave the euro, if the alternative is negative economic growth as far as the eye can see, along with a massively overvalued currency. If and when those rumblings start appearing, expect the Russians to start being extremely nice to the Cypriots all over again.

http://blogs.reuters.com/felix-salmon/2013/03/25/cyprus-its-not-over-yet/

Trust me.. no millionare let alone a billionare still has money in Cyprus... the stink about ta bail out for Cyprus has been in the works from September 2012. Anyone with serious money has already moved it. The people who will be hard is richer Cyriots and retired older English people, who have moved their savings there. Sure.. they might catch out some Russians that are involved in shady dealings but not all of them.

[Darnell 8,479]

What's wrong with Cypress allocating the monies deposited by Ukrainian and Russian Billionaires?

I don't get it, really.

[Mr. Big Dog 10,747]

Trust me.. no millionare let alone a billionare still has money in Cyprus...

Is that why the Russian government is fuming over this deal? Because it won't impact wealthy Russians and Russian firms?

Prime Minister Dmitry Medvedev - who ranks below Putin in the ruling hierarchy - earlier criticised the bailout deal that will inflict heavy losses on uninsured deposits of over 100,000 euros at the two main Cypriot banks.

"The stealing of what has already been stolen continues," Medvedev was quoted by news agencies as telling a meeting of government officials.

...

Russians are believed to account for most of the 19 billion euros of non-EU, non-bank money held in Cypriot banks at the last count by the central bank in January. Of 38 billion euros in deposits from banks, 13 billion came from outside the EU.

[Póg mo 1,749]

[quote name=' timestamp='1364225078' post='6076858]

Can they really take on the EU? I doubt it. You don't get that powerful and that rich by not knowing how to pick your fights.

Not the EU, but members of the Cypriot government better start investing in lots of extra personal security!

[Mr. Big Dog 10,747]

Not the EU, but members of the Cypriot government better start investing in lots of extra personal security!

The Cypriot government had no choice. They had their backs against the wall.

[Póg mo 1,749]

The Cypriot government had no choice. They had their backs against the wall.

No doubt, but I am not sure the Russian mafia will be that understanding!

[Mr. Big Dog 10,747]

No doubt, but I am not sure the Russian mafia will be that understanding!

Well, then they'll have to commit suicide because they brought this all onto themselves taking their money to Cyprus despite of what happened in Iceland just a few short years ago. The writing was on the wall. In letters 10 feet tall.