Russian unregistered money laundering  Greek Cypriots, is rebelling  the legal regulations of the European Union.

The legislature buried the bill last night in a humiliating snub to the EU and International Monetary Fund (IMF) that was cheered on the streets, despite the vote effectively plunging the Cypriot economy into a deeper crisis.

The backlash against Brussels prompted Cypriot politicians and central bank officials to stage emergency talks as Nicosia remains under pressure to heed the demands of its international rescuers while at the same time come up with a potential alternative to the tax grab.

The seizure of savers’ deposits, in return for shares in the lenders, was meant to raise 5.8bn euros (£4.96bn) towards the country’s financial rescue agreed with the EU, IMF and ECB.

But outrage among Cypriots and the impact on international markets had already pushed politicians to consider an exemption for smaller savers ahead of the vote.

Banks, which have been closed all week in Cyprus, will remain closed until further notice as a way forward is mapped out but it is understood at least two lenders are effectively insolvent while the others still face the prospect of a run on deposits.

It seems Cyprus is looking away from the EU and towards Russia in a last-minute attempt to avert the controversial savings tax – a strict condition of the 10 billion euro loan.

With Russian depositors in Cypriot banks making up to 50% of total savings, finance minister Michalis Sarris has sought to ease the terms and win an extension of a 2.5 billion euro loan that Moscow afforded Nicosia in 2011.

He told reporters in Moscow the talks had got off to a “very good” start and so far they had been “honest and open.”

But the Plan B for Cyprus could also include the option of going cap in hand to Moscow.

It is understood one proposal on the table is for the Russian natural gas giant Gazprom to come in and infuse the Cypriot banks with cash in exchange for interest in the island’s offshore energy fields.

Meanwhile, a British military plane arrived in Cyprus last night with one million euros onboard to ensure soldiers have access to cash during the crisis.

British soldiers stationed on the island and their families would be able to borrow from the money if cash machines and debit cards in Cyprus stop working completely, the Ministry of Defence said.

“The MoD is proactively approaching personnel to ask if they want their March, and future months’ salaries paid into UK bank accounts, rather than Cypriot accounts,” it said in a statement.

“We’re determined to do everything we can to minimise the impact of the Cyprus banking crisis on our people.”

Around 2,500 to 3,000 British military personnel are currently stationed in Cyprus.

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