Crisis in Cyprus affects Danish shipping

DFDS has seen a significant dip in its business with Russia. Several Russian customers have trouble making payments, as their capital is tied up in the troubled country, Cyprus. It is the first example of the crisis on the small island state affecting Danish business.

So far it has been uncertain whether the severe Euro-crisis in Cyprus would affect Danish companies, but now the first major corporation has reported issues – not due to Cypriot customers, but because Russian customers cannot make payments, leading to a significant dip in activity.

The blocking of accounts – many of which are Russian – on the island has frozen so many liquid assets that the shipping company DFDS has seen a decrease in Russian activity of a staggering 20 percent. According to the shipping company, the crisis in Cyprus is the only possible explanation. This morning DFDS received new numbers confirming the heavy dip and customers have explained that missing payments through Cyprus is one of the factors causing it.

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