Ukraine business to be largely unaffected by Cyprus levy

System Capital Management, Ukraine’s largest industrial holding company, reported on March 18 that the one-time levy proposed by Cyprus’ parliament on bank deposits “would not affect the financial standing of the SCM Group in any way.” Cyprus is not an investment destination where Ukrainian investors keep large amounts of funds, Jorge Intriago, a partner at Ernst & Young in Ukraine, told the Financial Times in a March 18 report. “For Ukrainian business, the whole purpose is to use Cyprus as a conduit to repatriate funds out of Ukraine and into other jurisdictions in a tax-efficient manner,” he said.