Next stop New York: wealthy Russians hurry money from Cyprus to US
Manhattan real estate feels benefit from Europe's financial crisis as city
becomes a money haven for Russians with cash to protect
Heidi Moore
guardian.co.uk, Wednesday 27 March 2013
http://www.guardian.co.uk/commentisfree/2013/mar/27/cyprus-wealthy-russians-new-york

[...] The financial woes of Cyprus may have become the blessings of New York.
Large chunks of Russian cash started falling into the New York real estate
market – larger, that is, than usual. Wealthy Russians haven't just been buying
apartments as individual investments; according to investment bankers, lawyers
and wealth advisers, over the past six months to a year – as the eurozone crisis
intensified with elections in Greece and Italy as well as the debacle in Cyprus
– those Russians have been looking to build real estate. Lawyers and advisers
have been making construction loans and sinking money into the concrete
foundations of the big real estate developments in Manhattan as well as other
centers of east coast glamor, including Miami.

Mermelstein's Russian clients are making no secret of their glee at having
avoided the bulk of the Cypriot fiasco, which would have taken up to 40% of
their deposits from bank accounts there. Six months ago, Mermelstein said, one
of his Russian clients took a few million dollars from his bank account in
Cyprus and made a loan to a real-estate project in New York. After Cyprus
announced an overnight bank raid into the deposits of rich customers, "he was
happy the loan came out of Cyprus and doesn't have to go back any time soon."
Such investments, ranging in size from $5m to $25m, have "gone up substantially"
according to Mermelstein. [...]
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