NICOSIA – Initially reluctant about European Union sanctions on Russia for the invasion, Cyprus was lauded by Ukraine’s Ambassador to the island for sticking to them despite close business ties with Russia.

“Cyprus’s support and contribution to increasing sanctions pressure on Russia is extremely important,” Ambassador Ruslan Nimchynskyi told Reuters, Cypriot banks long used by rich Russians.

“A key indicator in this matter is that Cyprus supports and implements international sanctions and restrictions against Russia imposed by the EU. It is also positive that Cyprus has never stood in the way of tougher sanctions or processing new sanctions packages,” he said.

Cyprus was once considered a primary source of foreign direct investment into Russia because of the sheer number of Russian companies based on the island, but sanctions have seen many firms re-domiciling, the news agency said.

In 2o23, the International Consortium of Investigative Journalists detailed how financial enablers in Cyprus tried to shield oligarchs’ assets from impending sanctions immediately after Russia’s invasion, while a small number of Cypriots have been sanctioned by the U.S. and Britain.

“We are sure the efforts of the Cypriot government and the support of international partners will strengthen the effectiveness of sanctions,” Nimchynskyi said.

Cyprus has hosted more over 20,000 displaced Ukrainians, and has also offered demining training to members of the Ukrainian military.