Downing Street has issued a statement following Tuesday’s meeting in Nicosia between the President of the Republic of Cyprus, Nikos Christodoulides, and UK Prime Minister Keir Starmer, highlighting their agreement to collaborate on tackling illicit Russian money flowing through Europe.

As part of the agreement, the UK will support Cyprus in establishing a new National Sanctions Implementation Unit aimed at disrupting the flow of Russian finance in Europe.

The partnership, endorsed by the two leaders, further solidifies the intelligence and security cooperation between the two countries.

The new unit will facilitate the exchange of expertise and intelligence between the UK’s Office of Financial Sanctions Implementation and Office of Trade Sanctions Implementation, and the Cypriot Ministry of Finance. This collaboration aims to intercept illicit finance and ensure the sanctions on Russia are effective in curtailing funding for Putin’s war efforts.

The initiative is part of broader UK-Cyprus cooperation to combat serious organized crime. The UK will also provide financial crime training for Cypriot law enforcement teams, delivered by the National Crime Agency. Additionally, HMRC will upskill Cypriot customs officers, enhancing their risk profiling, investigation, and prosecution capabilities, particularly in tackling illicit tobacco trade, much of which finds its way to British markets.

Prime Minister Starmer emphasized the importance of collaboration, stating: “This government is delivering on our Plan for Change, which is built on strong foundations, including our national security. Only by working with like-minded partners can we protect our interests both at home and abroad.

“Together with the Republic of Cyprus, we are stemming the flow of illicit finance through Europe to starve Putin’s war machine and protect global stability,” he added.

According to No. 10, Cyprus has frozen £1.5 billion in Russian assets since the start of Russia’s full-scale invasion of Ukraine. Furthermore, Cyprus joined the UK-led Shadow Fleet initiative in July to bolster Ukraine's efforts by intercepting ships engaged in illegal operations designed to circumvent sanctions.