Russia to Cyprus: I Must Break You

Submitted by Stockmaster3 on Tue, 03/19/2013 - 04:10

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Simply put, Russia is pissed.

Russia is not up for paying the bill to bailout Cyprus. All more the reason to consider staying in cold hard cash and small positions in the iPath S&P 500 VIX ST Futures ETN (VXX) and ProShares Short S&P500 (SH). President Vladimir Putin went on record and he believes the terms are "dangerous" and "unfair".

More on the subject via the WSJ.com

MOSCOW—Russia on Monday blasted a proposal for a bank-deposit tax that would hit Russian customers with a $2 billion bill to help finance Cyprus's bailout, with President Vladimir Putin calling the move "dangerous" and "unfair," and officials warning they may have to reconsider restructuring a $3.3 billion loan to the island nation.

The proposed move would impact Russian financial institutions, which hold more than $30 billion in accounts there, or roughly 30% of all Cypriot deposits. Russian officials said they weren't consulted on the proposal by euro-zone finance ministers and the International Monetary Fund, which Prime Minister Dmitry Medvedev likened to Soviet-era property seizures.

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Here is what Russia is really saying to Cyprus: