Cyprus turns to Russia as bailout deal flounders

The euro was in line for further turmoil last night after the Cypriot parliament rejected the troika’s bailout terms and turned to Moscow for help.

The new government was abandoned by its own members when they abstained in the vote and all others rejected the deal, which included taking a share of savings accounts to pay for a bank rescue.

There was confusion in Nicosia and among the troika as the finance minister, who came into government just three weeks ago, handed in his resignation before flying to Moscow to discuss borrowing terms with his Russian counterpart this morning.