Third list of sanctioned Cyprus companies expected Friday

A new list of natural and legal persons in Cyprus who will be subject to sanctions by the US and the UK is expected on Friday, it emerged on Tuesday.

Competent American and British authorities are expected to announce the names of more Cypriots and Cyprus-based companies to be placed under sanctions, the Cyprus News Agency reported. The sanctions concern the violation of restrictions put in place on Russia’s access to the international financial system through intermediaries and their businesses.

In April, the US and Britain had placed individuals and legal entities in Cyprus under sanctions, with President Nikos Christodoulides assuring the government is handling the situation.

“We are taking all necessary actions as a government from the very first moment, in cooperation with the supervisory bodies and the US and British authorities, to fully safeguard the name of our country,” he said at the time.

Nicosia, which has requested more information from the Americans in relation to the sanctions they imposed, last Friday received a second tranche from them explaining why the US placed natural and legal persons in Cyprus under sanctions.

These restrictive measures have led to company employees being left without pay.

Some 350 people have been left unpaid in April by a company that was sanctioned by the US and UK over dealings with Russia, head of the Cyprus Bar Association Christos Clerides said on Tuesday.

Employees working at two sanctioned firms have decried the move by banks to follow US sanction orders and freeze all bank accounts affiliated with sanctioned entities.

Clerides told CNA that the bar association requested and received information as its members are affected and have not been paid.

He added that the bar association is aware of the law firm employees but added that it also employs secretarial and other staff and that as a group of companies it has a winery and restaurant “and therefore a wider number of employees are affected.

“They are affected because the banks have frozen all the group’s accounts so they can’t be paid either.”

Clerides added that it is very likely that of the 350 the majority are not lawyers.

He explained that a similar problem that arose was that the office’s client base included a large number of companies that were served by it.

“In other words, the office provided management consultant services, placing its own lawyers or secretarial services in these companies and given the sanctions, the banks proceeded to freeze the accounts of these companies, i.e. the clientele,” he said.

Christodoulos Vassiliades, whose law firm has been sanctioned, issued a statement last month denying his firm had ever offered any services to sanctioned individuals. “On the contrary, we have complied and continue to comply with sanctions.”

The details of the US sanctions describe Vassiliades as “a prolific enabler of Russian oligarchs and is also being sanctioned by the UK.”