Many regular businesses and depositors have money in CY for normal practice, its not all tax dodgers as some would have you believe.
Yes, and those businesses and people who lose nothing. To quote from the FT:
The costs would be modest in comparison to the Russian state's resources. Russians hold around $31bn in deposits in Cyprus, or about a third of the total. As Moody's has calculated this includes $19bn in non-bank deposits and $12bn in Russian banks' deposits.
The levy on these deposits should amount to around $3.1bn. This is is only 0.15 per cent of Russia's GDP and only 0.05 per cent of Russia's foreign exchange reserves. This is miniscule.
But, it's a price worth paying. First, without a deal, Cyprus might impose capital controls that could freeze $40bn loans from Russian banks to Cyprus companies of Russian origin. As Ivan Tchakarov of Renaissance Capital says this would amount to a "non-trivial" 2 per cent of GDP. Next, as Monday's trading has already shown, there is is the impact on Russian financial markets.