KAZAN – Russia could ultimately benefit from Cyprus' introduction of a levy on bank deposit because it will make Russia's investment climate appear more stable, Russia Deputy Prime Minister Igor Shuvalov said on Tuesday.
"It is a good chance for the Russian banking system to fight for new depositors, new clients. And demonstrate that our banking system is stable," he told reporters.
"For Russia, in the mid-term perspective, this (opens) good opportunities... Russia will gain more than it will lose. For Russia this is a chance to demonstrate its more predictable rules of treating investors."
Russian officials, including President Vladimir Putin, have strongly criticized Cyprus' plan to introduce a levy on bank deposits, which will impact Russian companies and individuals that hold billions of euros in Cypriot accounts.
Russian banks had about $12 billion placed with Cypriot banks and corporate deposits amounted to $19 billion at the end of 2012, according to Moody's rating agency.
(Reporting Alexei Anishchuk, writing by Jason Bush. Editing by Jeremy Gaunt.)