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Cyprus has denied Russian media reports that it is ready to lease two military bases to Russia.

« There is no question of Russian air or naval military bases on the soil of Cyprus, » said Foreign Minister Ioannis Kasoulides.

Earlier, Russian government newspaper Rossiiskaya Gazeta said Cyprus President Nicos Anastasiades would make the offer on an official visit to Moscow on 25 February.

Cyprus is in the EU but not in Nato.

The leasing deal would concern an air base near Paphos and a naval base at Limassol, according to Rossiiskaya Gazeta. Russia can already use the bases temporarily.

But Mr Kasoulides dismissed the leasing claim, saying « there has never been any request from Russia about this », the Cyprus News Agency CNA reported.

He said President Anastasiades was referring to « the renewal of a military co-operation agreement with Russia consisting of maintenance of military equipment sold to Cyprus years ago, as well as the purchase of spare parts according to existing contracts ».

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The prime minister this morning chaired a meeting of senior officials to discuss the impact on the UK of possible Greek exit from the eurozone – and to take steps to ensure British banks and companies would not be excessively damaged.

Attended by the head of the Treasury, Nick Macpherson, the Treasury’s director of financial stability, Lowrie Kahn, and the Bank of England’s international director Phil Evans, David Cameron asked for information on the impact on Greece and the rest of the eurozone of Greece leaving the eurozone.

The chancellor did not attend, because he is on his way to the G20 meeting in Istanbul – though he has been kept in the loop on discussions.

There was agreement that the probability of Greece adopting a new currency had increased, as per my column of this morning. However those attending still believe that some kind of compromise between Athens and other eurozone governments can be reached to keep Greece in the euro.

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At least 15 people have been killed and many others wounded in a suicide bomb attack in the Iraqi capital, Baghdad, officials say.

The explosion happened in Kadhamiyah, a mainly Shia Muslim district in the north of the city, they added.

The attack happened at rush hour, and was the latest in a spate of explosions in the capital over the past two weeks.

On Sunday the government of Prime Minister Haider al-Abadi ended a 12-year-old night-time curfew in the city.

That came despite at least 32 people being killed on Saturday in a string of attacks across the city.

Mr Abadi said he had taken the decision to lift the curfew to help normalise life in Baghdad.

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The leaders of Russia, France and Germany have held « constructive and substantive » talks on ending the conflict in Ukraine, diplomats say.

Russian President Vladimir Putin, France’s Francois Hollande and German Chancellor Angela Merkel met for more than four hours in Moscow.

Mr Hollande and Mrs Merkel had brought with them a peace proposal details on which have not been released.

Russia is accused of arming pro-Russian separatists – a claim it denies.

The Kremlin also rejects claims by Ukraine and the West that its regular troops are fighting alongside the rebels in the eastern Donetsk and Luhansk regions.

Clashes have left nearly 5,400 people dead since April, the UN says.

A September ceasefire, signed in Minsk in Belarus, has failed to stop the violence. Since then the rebels have seized more ground, raising alarm in Kiev and among Ukraine’s backers.

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Nato is forming a new ‘spearhead’ force aimed at reassuring member countries in Eastern Europe and deterring what is perceived as a potential Russian threat to the Baltic Republics or other Nato members.