Address of the President of the Republic
at the seminar
“The Future of Cyprus for Russian
Business”, in Nicosia
Your Excellency Mr Ambassador of the Russian
Federation in Cyprus,
Distinguished
guests,
Ladies and
Gentlemen,
It gives me, indeed, a great pleasure to address
today this notable audience.
Firstly, let me congratulate the Cyprus – Russian
Business Association, the law firm Chryssafinis and Polyviou LLC and the
international law firm Withers of Zurich, for their excellent initiative in
organising this important seminar.
I would also like to thank all of you for your
presence here today. I am certain that this key seminar in Nicosia will
contribute greatly to strengthening further the close business ties between
Cyprus and the Russian Federation, amid the financial challenges we face
today.
I take this opportunity tο emphasize that my
Government has invested substantial time and effort in consolidating and
reforming our economy, since the Memorandum of Understanding with the Troika has
been signed. There is no doubt that Cyprus is making steady progress in
fulfilling the necessary requirements of its economic adjustment programme. The
fact that the international investment activity in the country is maintained at
high levels, proves the foreign entrepreneur’s trust towards investing in
Cyprus. To this end, I do believe that the prospects for the island look
extremely promising. Yet, we are aware of the difficulties, viewing them as a
challenge for the future that is to be overcome by constantly being alert and
concentrating on implementing our plan for further economic improvement.
I feel that it is imperative to also state that
throughout this past one and a half year period, we have managed to be on the
right track back to recovery. To that extent, I stress Cyprus’ credit outlook
upgrading by the international credit agencies, our country’s quick return to
international markets, the significant 13% increase in companies’ registration
we have recorded for the period between June and August of 2014 and, finally,
the significant improvement of our public finances. Within this framework, I am
very pleased to note that Russian investors have expressed a huge interest in
investing in Cyprus, in sectors such as banking, tourism and real estate.
This recent Russian investment activity reflects
the ongoing and steady business relationship among our countries, which also
includes important tourism exchanges. In fact, Russia is Cyprus’ second largest
tourist market, with the numbers of Russian citizens visiting our island
constantly increasing over the past years – the total tourist arrivals from
Russia until August 2014 have rose to almost 500 thousand visitors, with an
impressive increase of 17% compared to the same period for 2013.
Our country’s geographical position, as well as
all its other comparative advantages, have always provided the necessary trade
and economic links for further synergies and collaboration with Russia. In this
regard, I point out the benefits of our EU and Eurozone membership, the business
friendly tax regime, the extensive network of Double Tax Treaties and our
services-based economy, designed to cater to the needs of businesses wishing to
expand and operate in Europe, the Middle East, the Gulf States, Africa and Asia.
Moreover, our lawyers, accountants, auditors and other professionals are
considered to be among the highest qualified in the world, working within a
stable and predictable tax system and an effective and transparent regulatory
and legal framework, based on the Common Law and fully harmonized with EU laws
and regulations.
I can assure you that in our restructuring
efforts, we are working hard to enhance further our country’s established
reputation as a centre of excellence for international investment and business
activities, with opportunities for growth present in most economic sectors,
including hydrocarbons exploration and exploitation, shipping, tourism,
large-scale development projects, education, health and renewable energy.
Notably, my Government is greatly facilitating investments though the
application of measures that involve, among others, the reduction of the time
needed for issuing permits, the licensing and encouragement of the prompt
completion of projects, the licensing of joint ventures and the granting of
residence permits and citizenship to foreign investors.
Today’s seminar provides an excellent opportunity
for all participants to assess further the business connection between Russia
and Cyprus, taking into account that the Russian Federation has always been a
valued economic and trade partner for our country. Moreover, we will hopefully
be able, through our deliberations here, to assess the outcome of doing business
in Cyprus amid the EU sanctions imposed on the Russian Federation. It should be
noted that the current situation creates additional concerns for our economy.
Already our agricultural exports to the Russian Federation have been
affected.
As I have stated earlier, the progress achieved
by the Republic thus far, in its adjustment programme, is quite significant.
Therefore, we are currently looking further into this vital issue within the EU,
as we deeply value Russian business in Cyprus.
In closing, I would once again like to thank the
organizers of today’s seminar. I am confident that it will help identify new and
exciting business opportunities for the benefit of both our countries, whilst
also providing additional insight regarding The Future of Cyprus for Russian
Business.
With these few words, I wish everybody a pleasant
day and every success in your current and future business endeavours.
Thank you.
