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the russian president dmitry medvedev is visiting cyprus aiming for closer and more transparent financial ties the country is the biggest foreign investment investor in russia because so many russian companies are registered there but that may change as russia tightens up its tax rules tatiana puyola explains cyprus is a small island in the mediterranean and its russias biggest foreign investor however most of the capital flowing into russia is not cypriot its russian money coming back home from an offshore tax haven easy come easy go with minimal taxes for business top russian tycoons are operating through firms registered on cyprus its been previously so uncooperative that it was added to russias blacklist threatening tax penalties for companies registered there a new double taxation agreement is expected to remove cyprus from the notorious list but will boost information exchange between the two tax authorities it will mean a lot for restructuring of russian businesses in terms