The crisis in Cyprus not only threatens the Cypriot economy, but might also undermine the country’s relations with key partners and allies.

On Monday, the Cypriot government agreed a €10 billion bailout deal with the European Union and the International Monetary Fund, following a week of uncertainty and controversy. James Ker-Lindsay writes that while the situation has damaged Cyprus’s economy, it has also had a significant impact on the country’s relations with its neighbours and partners. Russia and Israel, who had both developed close associations with Cyprus, may scale back their involvement in the aftermath of the crisis, leaving the country’s place in the geopolitical order much more uncertain than it was a week ago