9 October 2013

Future of Cyprus for Russian business

Cyprus is gradually regaining its credibility as an international business centre. The banking sector is starting to recover and stabilize, making it a promising place for the future of Russian investors, despite the rescue package and the austerity measures imposed in March, officials said at a conference on September, 19th in Nicosia.

The conference was organized by Cyprus Chamber of Commerce and Industry, Cyprus Russian Business Association, Chryssafinis and Polyviou Law Firm and Withers LLP.

The recession and the damage done to the island’s reputation required efforts to be multiplied. The government’s goal is to create a new relationship between the private and public sectors which would require reforms to overcome bureaucracy and create transparency. Public finances needed to be improved to maintain Cyprus’ attractive tax regime.

Cyprus remains an excellent destination for international investors. The government is determined to take all of the necessary measures and reforms in the areas of infrastructure, strategies, incentives, laws and regulations. Restoring the viability of public finances by implementing reforms is crucial in re-establishing the credibility of Cyprus in the eyes of the markets.

Key areas of investment in Cyprus are:

  • Tourism (inclusive newly developing medical/rehabilitation tourism)
  • Intellectual Property Sector
  • Casino
  • Hydrocarbons
  • Forex
  • Real Estate
  • Precious metals trade (gold, silver, platinum)
  • Shipping
  • Film Industry sector

Russian business had played a decisive role in developing Cyprus’ economy, which had also benefitted Russia. Russian ambassador to Cyprus Stanislav Osadchiy, who also spoke at the conference, said he was convinced that Russian capital would remain in Cyprus. Following contacts he has had with business circles in Moscow, he believes Russian businessmen want to stay and help Cyprus and its economy. In the new Board of the Bank of Cyprus, 6 board members are Russians. That says a lot but more importantly it reiterates the confidence of the Russian business community in the Cyprus banking system. A system maintains all its advantages, which of course will be improved further. Cyprus banking system is slowly and steadily recovering and the country is regaining its credibility and that hard work, dedication and discipline needed to continue.

Several key large-scale projects with partial or full foreign investment are currently underway: a Liquefied Natural Gas plant, a Tank Terminals Vasiliko, the €350 milion Limassol Marina project, the €1,5 billion Limni Bay resort, the  €1,5 billion Venus Rock Golf Resort and the new established casino industry. The projects are invoked to help kick-start economy and encourage investment.


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