You could forgive wealthy Russians for steering clear of Cypriot banks given that many Russians with large deposits in the country were hit hard by a "bail-in" of bank deposits when the financial crisis hit in 2013.
As well as imposing strict capital controls on account holders, the Cyprus government had to wind down the Cyprus Popular Bank and recapitalize another — the Bank of Cyprus — with measures including the seizing of depositors' uninsured savings above 100,000 euros ($120,000).
That unprecedented measure saw many foreigners hit and many of the accounts with larger deposits were Russian owned. The island's financial system had been particularly popular with Russian investors and businesses, prompting accusations that it was a place for money laundering at worst and tax avoidance at best.
Up to 40 percent of Cypriot bank deposits were estimated to belong to Russian businesses and individuals worth around $32 billion, according to analysis by Moody's ratings agency at the time.