Putin sows EU division using cash and charm

Nicosia, Cyprus

WHEN Cyprus seized hundreds of millions of dollars from bank depositors, many of them Russians, as part of an internationally brokered deal two years ago to rescue its collapsing financial system, the Russian leader, Vladimir Putin, denounced the move as "dangerous" and "unfair," warning of a sharp chill in relations.

But Mr Putin was all smiles recently when he received Cyprus' president, Nicos Anastasiades, in Moscow. He hailed relations with the Mediterranean nation as "always being truly friendly and mutually beneficial" and agreed to extend - on greatly improved terms for Cyprus - a US$2.5 billion Russian loan.

The shift from fury to declarations of eternal friendship displayed Mr Putin's well-known flair for tactical back flips. But it also showed his unbending determination to break out of sanctions imposed on Russia by the US and the European Union for Moscow's annexa…