A number of Russian companies that have accounts in Cypriot banks that have resumed operations are seeking to withdraw funds outside the island state, but are encountering difficulties due to stricter requirements for opening accounts in other countries, RIA Novosti reports , citing sources in Cyprus.

“Large Russian companies that use Cypriot offshore companies in their work are building new ownership structures without using this jurisdiction. Our Russian clients are alarmed and are considering the possibility of excluding Cypriot companies from management structures. Clients are demanding the withdrawal of funds from current accounts in Cyprus,” a source told the agency in the island's financial sector, who asked not to be named.

According to him, on Thursday morning there were problems with opening accounts in the Baltic states. “The regulator’s requirements have become many times more complicated,” explained the agency’s interlocutor. "Initially, many clients came from other countries. Today we call - they are not allowed (to transfer money). In some countries there are instructions related to this, in the Baltics, and in Malta, and in Luxembourg. Slovenia announced the introduction of restrictions and revision policies to attract investment,” said, in turn, managing partner of the law firm Andreas Sofokleous & Co Andreas Sofokleous.

Banks in Cyprus, closed since March 16, resumed operations on Thursday. The Ministry of Finance recently introduced strict restrictions on the movement of capital: a limit of 300 euros per day was set for cash withdrawals from an account, transactions over 5 thousand euros are carried out by decision of a special commission and in the presence of supporting documents. Payments of more than 200 thousand euros are made only with the approval of the regulator and provided that the Central Bank has the necessary liquidity.

Russian Prime Minister Dmitry Medvedev said on March 21 that due to the closure of banks in Cyprus, the accounts of Russian government agencies were blocked. Medvedev noted that a large number of Russian public companies have accounts in both Russian and foreign banks, including in Cyprus, since this is a convenient jurisdiction for conducting transactions.

Sources reported problems in withdrawing Russian funds from Cyprus