That's just a convenient excuse- it's all about setting a precedent. Bank depositors (even "insured" deposits) now are below bondholders in priority, today they say it's okay because the Russians (ignore that there are plenty of non-Russians in Cyprus- like, you know, Cypriots- they don't matter because "organized crime" ooh scary), tomorrow it'll be okay because it was okay in Cyprus.Cyprus is the money landering capitol and piggy bank for Russian organized crime. Putin is speaking on behalf of depositors who would otherwise be reluctant to identify themselves.
P.S. The Germans originally wanted 40%, not the 10% being confiscated.
If this goes through there by rights ought to be runs on every bank in southern Europe.