(OTHER)Germany warns Cyprus its banks may NEVER reopen as Russia 'offers to write off debt if Gazprom get access to untapped oil fields'.(DM).Germany's warning came after Cyprus's parliament overwhelmingly rejected a proposed levy on bank deposits as a condition for a European bailout of 10 billion euros (£8.6bn) last night. German Chancellor Angela Merkel said it was up to the Cypriot government to come up with an alternative proposal but it was fair to expect savers with deposits over 100,000 euros (£86,000) to contribute to the bailout. Moscow is now a massive ally for Cyprus - Cypriot Finance Minister Michael Sarris said he had not reached a deal at a first meeting today with his Russian counterpart Anton Siluanov, but talks there would continue. ...Russia's finance ministry said Nicosia had sought a further 5 billion euros, on top of a five-year extension and lower interest on an existing 2.5 billion euro loan. Moscow was angered that the European Union did not consult it over the proposed levy.President Vladimir Putin called the decision to seize money from savers’ bank accounts as ‘unfair, unprofessional and dangerous’. Representatives of the Russian energy giant submitted the proposal to the office of Cypriot President Nicos Anastasiades on Sunday evening. 'The entire wealth of the Church is at the disposal of the country ... so that we can stand on our own two feet and not on those of foreigners,'Archbishop Chrysostomos said after meeting Anastasiades early today. The Church of Cyprus is a major shareholder in Cyprus's third-largest domestic lender, Hellenic Bank. It is also rumoured that the Kremlin is privately offering to help bail out Cyprus in exchange for the right to use a naval base in the Greek part of the island.Hmmmm.......Would be very welcome now that Tartus is 'sinking'.Read the full storyhere. Update: Cyprus Fails to Obtain Kremlin Aid.(MT) Sarris did not manage to negotiate a Russian bailout despite a 1 1/2 hour meeting with his counterpart, Anton Siluanov. "We had a very good first meeting, very constructive, very honest discussion," he told journalists afterward, Bloomberg reported. Sarris subsequently attended a second meeting with Deputy Prime Minister Igor Shuvalov, Siluanov and Deputy Finance Minister Sergei Storchak. An undisclosed source told Russian newswires that negotiations had not yielded any results and would continue Thursday. European Commission President Jose Manuel Barroso is due to visit Moscow on Thursday for scheduled talks. "We understand how difficult the situation is, and we'll continue negotiations to find the solutions that will help us obtain Russia's support," Sarris said, adding that the Cypriot delegation would remain in Moscow "until we reach any agreement." Read the full story here.(Man In Glass House Dress In Basement) This is payback for the Leviathon gas and petrol finds Cyprus is involved with Israel against the will of Moscow and Syria.