The Bank of Cyprus has announced that it has been granted a license to start operating and write letter of credit (L/C) business in Russia.

This makes the bank the first lender based in Greece or Cyprus to enter the Russian market.

Strategy

The bank says its strategy for penetrating the Russian market is to initially develop a loan portfolio and provide services such as L/Cs, loan guarantees, foreign exchange services and payment orders to existing corporate clients.

Under Russian regulations, the bank cannot take deposits for the first two years of operation there.

Global presence

The bank said it had recruited key staff for its Russian operations and had prepared infrastructure to enable a rapid expansion.

Cyprus's biggest lender operates in Greece, Britain, Australia and Romania, and has said it was looking to expand into Ukraine.

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