NICOSIA (AFP) - The Bank of Cyprus said on Thursday that it has been granted a license from Russia's central bank to begin operating in that country, a first for a lender on the eastern Mediterranean island.

The license, which the bank said was granted on Wednesday, is a "determined step" towards realizing the strategic goal of expanding into "new dynamic markets with excellent prospects to increase size and profitability."

The strategy will be first to develop a loan portfolio and to provide services to existing corporate clients, "thus minimizing credit risk and effectively deploying excess liquidity."

In line with Russian regulations, the bank will not take deposits from individuals during the first two years. The bank said it has already recruited key personnel and rented a building in Moscow to start up operations there.

The Bank of Cyprus Group operates 283 branches, with 144 in Cyprus, 121 in Greece, six in Britain, 11 in Australia.

The statement said the bank plans to open its first branch in Romania soon.

As of March 31, the bank's total assets were 15.22 billion Cyprus pounds ($35.16 billion).