Russia’s rich, who favour Cyprus as a haven foir their wealth, have their own Russian Orthodox church in the village of Episkopio, near Nicosia, built by the Russian businessman Viatislav Zaragov

Ministers are considering taking action against Cyprus, claiming that the country breached money-laundering rules when it helped Moscow with a politically motivated lawsuit.

Ian Austin, a Labour MP, has asked Stephen Barclay, economic secretary to the Treasury, to recommend that Cyprus be rated “non-compliant” with EU money- laundering rules.

Mr Barclay is understood to be looking into the issue, which may be raised by Treasury officials at a December meeting of the European Union’s fraud-busting wing.

Cyprus is under scrutiny for helping Russian investigators to pursue tax evasion allegations against Bill Browder, a hedge fund manager-turned-human rights campaigner.

The Council of Europe has told member states not to help Moscow with its case, which was launched after Mr Browder’s Hermitage fund uncovered a $230 million