Russian and Ukrainian business dealings with Cypriot banks dwindled due to sanctions, banks say

Cyprus' banks have said their exposure to Russian and Ukrainian businesses shrunk by more than 13,000 clients and 35,000 accounts, amounting to €2 billion euros, in the year after Moscow's 2022 invasion of its neighbor as they adhered to sanctions that the UN, the European Union, the US and Britain have imposed on Russia.

According to official figures seen by the Associated Press Friday, the proportion of Russian clients in Cypriot banks almost halved in the same period to 0.35%, while Russian deposits fell from 2.21% to 1.53% of the banks' total.

Cypriot banks are keen to showcase a sustained, decade-long turnaround from lax supervisory practices that attracted shady depositors, including wealthy Russian oligarchs. Cypriot officials said a transparent financial system free of such practices would help entice legitimate international investment.

That turnaround...