Russia's Medvedev: EU "bull in china shop" on Cyprus

MOSCOW Thu Mar 21, 2013 7:40am IST

Russia's Prime Minister Dmitry Medvedev speaks during a meeting at the Itamaraty Palace in Brasilia February 20, 2013. REUTERS/Ueslei Marcelino/Files

Russia's Prime Minister Dmitry Medvedev speaks during a meeting at the Itamaraty Palace in Brasilia February 20, 2013.

Credit: Reuters/Ueslei Marcelino/Files

Related Topics

MOSCOW (Reuters) - Russian Prime Minister Dmitry Medvedev criticised the European Union's handling of the financial crisis gripping Cyprus on Wednesday, describing it as a "bull in a china shop".

He also raised the prospect of cancelling a tax treaty with the island, where many Russians keep billions of euros in savings that have been a factor in negotiations on aid to Cypriot banks.

A day before a visit to Moscow by European Commission leaders, Medvedev said a bank deposit levy, proposed by the EU as the price of a bailout and rejected by Cyprus, reminded him of Soviet-era policies he said robbed Russians of their savings.

"So far, the actions of the EU, the European Commission and the government of Cyprus on resolving the debt problem unfortunately remind me of the actions of a bull in a china shop," RIA news agency quoted Medvedev as telling journalists.

With Cyprus seeking an alternative loan deal from Russia, Medvedev raised the prospect of the dissolution of a treaty on the avoidance of double-taxation between the two nations, which would make Cyprus less attractive for Russians with money.

"I don't know if we need this treaty in this case. The question of its cancellation ... could come up," he said. "So I say again: it's necessary to act with the utmost care."

The proposed bank levy, rejected by the Cypriot parliament on Tuesday, had a "clearly confiscatory, expropriating character," RIA quoted him as saying - remarks that echo earlier criticism by Russian President Vladimir Putin.

It was, Medvedev said, "absolutely unprecedented".

He added: "I can only compare it some of the decisions taken ... by Soviet authorities, who did not give a thought to the savings of the population."

European Commission President Jose Manuel Barroso is leading a delegation on a two-day visit to Moscow starting on Thursday. (Reporting by Lidia Kelly, Steve Gutterman and Gareth Jones; Editing by Alastair Macdonald)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Shares Hit Record

Sensex, Nifty rise to second consecutive record high

Sensex surges 500 points on BOJ easing, L&T gains

The BSE Sensex and Nifty surged to record highs for a second consecutive session on Friday after Bank of Japan's surprise expansion of its massive stimulus programme raised hopes for additional foreign inflows, boosting blue-chips such as Larsen & Toubro.  Full Article 

REUTERS SHOWCASE

Indian Economy

Indian Economy

India's fiscal deficit in H1 almost 83 pct of full-year target.  Full Article 

M&M Earnings

M&M Earnings

M&M Q2 net profit down 4 percent, hit by poor monsoon.  Full Article 

Ban on E-Cigs?

Ban on E-Cigs?

Govt considers ban on e-cigarettes, sale of single smokes.  Full Article 

Commodities

Commodities

Silver futures in India hit four-year low on global cues.  Full Article 

BOJ Policy

BOJ Policy

BOJ shocks markets with surprise easing as inflation slows.  Full Article 

Shadow Banking

Shadow Banking

China's shadow banking sector growing rapidly, third largest in world - FSB.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage