Cypriot corruption scandal sparked by online video shows signs of Russian interference, experts allege

On Jan. 1, Cyprus assumed the rotating Presidency of the Council of the European Union, a responsibility it will hold through the end of June. One day following the ceremony marking the start of the six-month presidency — which was attended by Ukrainian President Volodymyr Zelensky and European Commission President Ursula von der Leyen — a video posted on X appeared to show senior Cypriot officials discussing ways to bypass campaign spending limits with cash donations and even referred to potential means of helping Russian citizens evade EU sanctions.

After the video was published, Charalambos Charalambous, the head of the Cypriot presidential administration, and First Lady Philippa Karsera, who led a children’s charity, both resigned from their positions. Charalambous said the recording was spliced together in a misleading way and deliberately took the speakers’ words out of context; he filed a complaint with the police. Two other figures who featured in the video — former energy minister Giorgos Lakkotrypis and Giorgos Chrysochos, the CEO of leading local development and construction group Cyfield — also filed complaints related to the allegedly illegal recording.

The government described the video’s appearance as an act of “hybrid war,” and the country’s intelligence services have launched an investigation drawing on help from the U.S. and Israel. “Based on further investigation and information already collected by the competent Service, a case of hybrid activity against the Republic of Cyprus is being examined,” the government said.

Cypriot media, citing government sources, reported a possible link to the Russian disinformation campaign known as Doppelgänger. The domestic political opposition, however, rejected claims of foreign interference and called for transparency, with lawmaker Irene Charalambidou of the left-wing AKEL party saying that “if there were no corruption, there would have been nothing to record.”

Petar Tanev, an adviser in the European Parliament, told The Insider that the scandal goes beyond internal politics and directly affects Cyprus’ role in the EU Council.

“It directly affects Cyprus’ institutional credibility within the Council of the EU. The EU presidency is first and foremost a function of trust. The presiding state must be politically neutral, institutionally resilient and reputationally impeccable as an arbiter,” Tanev said. “Particularly concerning is the authorities’ attempt to build a defensive narrative solely through the prism of ‘external interference’ without comprehensive institutional answers to key questions: who exactly appears in the video, which state functions were affected, and what systemic vulnerabilities allowed such practices to emerge?”

Tanaev stressed that Nicosia must take actions aimed at restoring confidence:

“For the EU, which is currently focused on tightening its sanctions policy against Russia, such uncertainty looks like a weak link within the Union itself. Cyprus’ presidency risks unfolding amid constant political ‘background noise’: heightened scrutiny from the European Parliament and the media, and mistrust from member states. For Cyprus today, it is critically important not to limit itself to rhetoric about disinformation but to demonstrate a firm institutional response — an independent investigation, transparency, and real reforms. Without this, Cyprus’ presidency risks becoming not a platform for strengthening the European agenda, but a constant reminder that the problem of the rule of law and sanctions enforcement remains acute not only on the EU’s periphery, but at its very core.”

At the same time, investigative journalist Makarios Drousiotis, the author of multiple books on corruption and Russia and the Soviet Union’s influence in Cyprus, said he has no doubt the episode was an influence operation directed against President Nikos Christodoulides.

“The Cypriot government connects the video's release to Cyprus's presidency of the EU…The Russian embassy did not dispute these claims,” Drousiotis told The Insider. “Rather than issuing another comment, the Russian ambassador in Nicosia released a statement to [state-controlled news agency] TASS expressing hope that, during its EU Council presidency, Nicosia will encourage fellow European Union members to adopt a new, more pragmatic and responsible approach toward Moscow.

Historically, the Soviet Union and subsequently Russia have played a significant role in shaping developments in Cyprus. During his term as a minister in the previous administration, Christodoulides was regarded as having a cooperative relationship with Russia. Following his election as President, he shifted policies toward Western alignment, prompted by Russia's isolation within the European Union. Moscow is blackmailing Christodoulides to change course,” he said.

The release of the video occurred amid a series of two mysterious occurrences involving Russian nationals on the island.

On Jan. 8 — the same day the video appeared on X — Anton Panov, a cryptographer with links to Russia’s Foreign Intelligence Service, or SVR, apparently died by suicide. According to Russian officials, Panov, an employee of the Russian Embassy in Nicosia, was found hanged in his office inside the embassy compound last Thursday. Cypriot police classified the case as an unnatural death but said preliminary findings ruled out criminal activity. Cypriot authorities were denied access to the embassy building and were handed the body several hours later in the courtyard.

Embassy officials said Panov left a suicide note, which was not shared with Cypriot investigators and was reportedly sent to Moscow. A postmortem by the Republic’s state pathologist found that Panov died of asphyxia caused by hanging, with no signs of injury or struggle. Phone records obtained by The Insider showed he had operational contacts with SVR officers and had previously worked on cyber and information security projects.

Shortly before his posting to Cyprus, Panov communicated with senior officials including Foreign Minister Sergey Lavrov, deputy ministers, and figures linked to departments known for placing intelligence officers under diplomatic cover.

The anonymous Telegram channel VChK-OGPU, known for publishing alleged leaks from Russian intelligence and security agencies, claimed Panov and his wife lost a large down payment in a failed real estate project in Crimea that was later investigated as suspected fraud. Panov had reportedly written online that “they have stolen from us” and called for the case to be made public. Other media outlets reported that he had accumulated significant gambling debts, claims later echoed by independent journalists.

Western diplomats in Nicosia have privately expressed concern about the circumstances of Panov’s death. One ambassador told The Guardian that while “conspiracy theories may abound,” a connection to broader developments could not be ruled out. Another described the situation as “mysterious and sinister.”

Panov’s death came within 24 hours of the disappearance in Cyprus of Vladislav Baumgertner, a Russian businessman and former CEO of the fertilizer giant Uralkali, prompting speculation of a possible link between the two deaths. Cypriot police say there is “no indication so far” connecting the two cases.

On Jan. 14, exactly one week after Baumgertner was reported missing, a heavily decomposed body was discovered along the Avdimou coastal area, close to where the businessman’s phone had last transmitted a signal. While several outlets, like the St. Petersburg-based Fontanka, have reported that the body is that of Baumgertner, the police are awaiting the results of DNA tests to confirm the person’s identity.