The proposed Cyprus levy on banking deposits should not alter Russia's domestic capital flow, the news agency Prime quoted Deputy Economy Minister Andrei Klepach as saying on Monday.

"I don't think (the tax) will have significant implications... This is a matter of increased risks, not (capital) flight," Klepach said.

Russian banks had about $12 billion placed with Cypriot banks at the end of 2012, according to Moody's rating agency. Based on official Russia's central bank data, that would suggest an increase of around $3 billion from 2011.

(Writing by Lidia Kelly; Editing by Katya Golubkova)