Julia Ioffe explains:
Cyprus was once an English colony, which means that it has English law, which the Russians revere for its ability to fairly settle business disputes. Not only is Cyprus an Orthodox Christian country, with an alphabet from which Cyrillic was derived, it is also a place with rule of law and a functioning, independent court system. Russians do not have this at home, where money or property can be yours one day, and someone else’s the next, without any legal recourse. So yes, money gets laundered in Cyprus, but money is also kept safe there from other Russians, specifically those working in the Russian government.
The Dish 