"In an effort to obtain resources to recapitalize its banking system and avoid austerity measures, Cyprus is expected to turn to Russia for financial assistance.
"Moscow is likely to be the lender of last resort for the country that is the largest source of foreign direct investment in Russia. ...
"... Rating agency Moody's has lowered Cyprus’s sovereign debt by two notches from Ba1 to Ba3, citing the increased risks of a Greek exit from the eurozone and its generally unstable fiscal position.
"The Cyprus economy is heavily dependent on Greece. The Greek debt crisis made the yield of 10-year Cypriot bonds jump to 14%. The credit risk exposure of Cypriot banks to investments in Greece is currently estimated at €23 billion, which exceeds the island's €17.3 billion GDP. Moreover, Cyprus will have to put up with the financial burden of a six-month presidency of the EU starting from July 1. ..."