Alleged Russian spy ring paymaster freed on bail

Greek Cypriot police fear Christopher Metsos may flee country after court unexpectedly decides against detention

Greek Cypriot police appeared dumbfounded today that Christopher Metsos, the alleged paymaster of the Russian "deep cover" spying operation, should have been released on bail.

The 11th member of the suspected espionage ring was arrested at 9am today at Larnaca airport by officers acting on an Interpol "red notice", moments before he was about to board a plane bound for Budapest. Appearing before a district court judge in Larnaca, the 55-year-old was told he could walk free, pending an extradition hearing within 30 days, if he posted €20,000 (£16,000) bail.

Metsos, who is thought to have been travelling on a Canadian passport, is believed to have returned immediately to his hotel in Larnaca, which he had booked out of only hours before.

"It is not what we expected," a police spokesman said. "We wanted to have him detained until an extradition hearing … We are now waiting for more documents from the United States in the hope that we can go back to the courts."

Suspects arrested on the island are almost always held in custody for fear they may attempt to flee through the internationally unrecognised Turkish-run enclave of northern Cyprus. Both Turkey and Syria are only short boat rides away.

The red notice stipulated Metsos was wanted by the FBI on charges of money laundering and espionage.

According to court documents, Metsos was the go-between for agents across the US. He is accused of receiving money from a Russian agent, which he then allegedly buried in a park in northern Virginia for the other spies to retrieve.

"He is now on stop lists at every checkpoint on the island," added the spokesman. "He no longer has travel documents and has to report to a police station every day. But yes, I suppose it would be possible for him [to escape] through the north [of Cyprus], if he got there."

The strategic Mediterranean island has long been considered a staging post for spies.

The US and Russian embassies stand only metres apart in the capital, Nicosia. Topped with satellite dishes and listening devices, both spend an inordinate amount of time trying to track each other.

Nearly eight hours after Metsos's arrest, a spokesman at the US embassy said: "We have not been contacted by anyone about this. We have heard the reports but we don't have anything on it."

Cyprus has a flourishing Russian community, with Russian advertisements, media and shops selling Russian goods in abundance. Unlike any other EU state, the Cypriot government is also headed by a communist party, Akel, that has strong ties to Moscow.

Like many other members of the self-described Marxist-Leninist Akel, the president, Demetris Christofias, studied in Moscow. He graduated in 1974 from the academy of social sciences and is a fluent Russian speaker.

The Greek Cypriots have long relied on fellow Orthodox Russia, which wields a vote in the UN security council, for support in continuing negotiations to reunite the divided island.

After Metsos's arrest, and unexpected bail, Cyprus's ties with Moscow have led to speculation that he was allowed to walk free – making the plot of a story that already reads like a classic espionage thriller even thicker.

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