Russian oligarchs may have withdrawn their billions from dying Cyprus banks in the week before the banks were disemboweled by the Troika to get at that very same Russian money.
As it turns out, these same oligarchs may have used the one week hiatus period of total chaos in the banking system to transfer the bulk of the cash they had deposited with one of the two main Cypriot banks, in the process making the whole punitive point of collapsing the Cyprus financial system entirely moot.
This not only makes the punitive measures moot, it makes Merkel and the Troika look like the Keystone Cops. It also means all those billions Eurozone bankers were expecting to steal to prop themselves up has vanished. This is extremely bad for Cyprus and the Eurozone. Statements by Eurozone make it clear the target was always Russia, and Cyprus just happened to get caught in the crossfire, or should we say blowback.
The two banks at the centre of the crisis – Cyprus Popular Bank, also known as Laiki, and Bank of Cyprus – have units in London which remained open throughout the week and placed no limits on withdrawals.