A Trojan Horse in Europe: The Greek Cypriot Administration

Since the beginning of Russia’s invasion of Ukraine, Turkey has frequently been accused by Western countries of being unreliable and even treacherous for not joining the European Union’s sanctions against Russia and for not approving Sweden and Finland’s NATO membership. Although official statements were more cautious, Western public opinion and media went as far as suggesting that Turkey should be expelled from NATO.

This situation spiraled out of control to such an extent that even after Turkey approved the NATO membership of both Sweden and Finland, the perception did not change.

Meanwhile, from the very first weeks of the war, it was revealed through various open-source intelligence studies that Russian oil was being transported to Europe via Cypriot ships. However, Russia’s games in the Eastern Mediterranean are far from limited to this.

The Greek Administration of Cyprus as a Russian Basement

It is not an exaggeration to claim that Southern Cyprus has become an important center of Russian influence in Europe in recent years. For Russian oligarchs such as Boris Rotenberg, Igor Kesaev, and Oleg Deripaska, Cyprus has turned into a financial hub where they can hide their assets through shell companies to avoid sanctions. Since the start of the Ukraine War, despite international sanctions and restrictions, Russian intelligence services, oligarchs, and cultural organizations have deeply infiltrated the political, cultural, and economic life of Southern Cyprus.

Cypriot investigative journalist Boris Demash has unveiled the striking extent of Russian presence in the Greek Administration of Cyprus. Demash goes so far as to describe it as “a Kremlin base within the European Union.”

The “golden passport” program of Greek Cypriot authorities paved the way for this situation. This program allowed individuals to obtain Cypriot citizenship in exchange for investments.

The “golden passport” program opened a door for many individuals, including oligarchs close to Putin, to evade Western sanctions. Although the program has since been shut down under EU pressure, the passports issued in the past remain valid. As a result, many individuals connected to the Kremlin continue to access European financial and legal systems, Cypriot Cyprus elites continue to live off Russian money.

Cultural Organizations

Demash’s revelations do not stop there. According to him, Russian intelligence has deeply infiltrated both the political and business circles in Cyprus. Moreover, Russian intelligence continues to exert its influence not only through corruption and financial networks but also through religious and cultural organizations used as fronts. Sergey Stepashin, a former director of the Russian FSB, heads the Imperial Orthodox Palestine Society, which operates in the region. These organizations maintain close ties with local authorities and Russian-speaking communities, promoting pro-Russian sentiments and serving the Kremlin’s interests.

In 2021, the participation of the Russian Embassy at the opening of the “Family – A Guarantee of Peace” monument in Ayia Napa was particularly noteworthy.

A Pro-Russian Society

Demash states that the majority of the Cypriot society is overwhelmingly pro-Russian. According to him, the primary reason for this is the wealth of the Russians. Therefore, Greek Cypriot political and business elites not only sympathize with Russian intelligence but also actively cooperate in helping them evade sanctions and launder their dirty money. Cypriot companies and front individuals have been reported in the local press for managing the assets of figures like Boris Rotenberg, including yachts and real estate.

Demash claims that this practice is quite widespread since the entire Cypriot society is inclined to serve the Russians. The local population admires Vladimir Putin, seeing him as a strong leader, and fully supports his policies. They view Ukraine as a “state brainwashed by Americans” and a “rebellious province,” and according to Demash, 90% of the population shares this opinion. Local lawyers, businessmen, and officials are involved in Russian corruption schemes, and many members of the Greek Cypriot parliament’s legal office also serve these Russian oligarchs, officials, and crime lords.

Failed Efforts by Ukrainians

The Ukrainian diaspora in Cyprus has not remained silent. The diaspora has tried to counter Russian propaganda but has failed to achieve any results. Local authorities and the Cypriot community ignored their complaints and calls. Moreover, local authorities supported Victory Day parades, a Russian national holiday and a crucial element of Kremlin propaganda, along with rallies where Wagner flags were raised and the annexation of Ukrainian territories was celebrated. Demash states that local authorities turned a blind eye to these calls, with no reaction or sanctions imposed.

While Greek Cypriot officials overlooked these developments, Russia continued to achieve its goals, and pro-war rallies supporting Russia’s invasion of Ukraine were held right in the heart of this EU member state, under the full protection of police and authorities.

According to Demash, Cyprus has become a Kremlin colony. With decades of economic ties and investments, Russia has significant influence in the south of the island. This makes Cyprus a gateway for Russia to evade EU sanctions, launder dirty money, and finance Russian special operations, posing a major threat to both the European Union and Ukraine. Additionally, it serves as a second point of influence for Russia in the Eastern Mediterranean, after Syria.

Western Support for the Nicosia

Despite all this, Western support for the south of the island continues. It is understandable that the UK, which has bases in Cyprus, would not interfere in the internal affairs of what it now recognizes as a sovereign state. However, it is noteworthy that the EU has also turned a blind eye to the situation. On the other hand, the same EU did not hesitate to punish Hungary for opposing its policies.

Perhaps the most surprising Western support came when the United States lifted its longstanding arms embargo on Cyprus, practically rewarding it and disrupting the military balance on the island. Despite Turkey’s strong reactions, the U.S. did not back down and continued discussions with Cyprus regarding arms sales.

Why do the U.S., the UK, and the EU reward Cyprus instead of penalizing it, despite the clear Russian influence right before their eyes?