Sunday October 26, 2014 Search
Weather | Athens
19o C
12o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
New Russia sanctions catastrophic for Cyprus, minister says

Cyprus’s economic ties with Russia, which include about $100 billion in investments between the two countries, could be severed if the European Union applies a third round of sanctions over Russia’s role in the Ukrainian unrest, Cypriot Foreign Minister Ioannis Kasoulides said.

While EU and U.S. sanctions in response to Russia’s annexation of Crimea have so far had limited impact on Cyprus, a new set of measures “introduced in a blanket way, would have a catastrophic effect on Cyprus’s economy and many other EU states,” Kasoulides said in a June 2 interview in Nicosia.

Cyprus is the biggest foreign investor in Russia, with $69 billion accumulated through the end of last year, while the island is the second-biggest destination for Russian investment at $33 billion, according to the Moscow-based Federal Statistics Service. Low tax rates and a treaty to prevent double taxation have made Cyprus the conduit of choice for Russians moving money in and out of their country.

EU leaders last week put off further sanctions on Russia after President Vladimir Putin showed a willingness to work with Ukrainian President-elect Petro Poroshenko. The EU will continue preparing measures if events require further steps, they said.

While Cyprus’s Ukraine policy doesn’t diverge from the EU line, communication between the EU and Russia “must be kept open and the solution must be diplomatic,” Kasoulides said.

US President Barack Obama will attend a meeting of the G-7 countries in Brussels starting today, originally scheduled as a G-8 summit in Sochi, Russia, prior to the annexation of Crimea. Putin will meet French President Francois Hollande on June 5 before joining other world leaders, including Obama, on June 6 for the 70th anniversary of the Normandy D-Day invasion.

Cyprus’s economy, the third smallest in the euro area, shrank 5.4 percent last year under the weight of austerity measures and restructuring of the financial industry required by international creditors in return for a 10 billion-euro ($13.6 billion) rescue. The Cypriot government has prioritized energy as a growth industry to help restart the economy.

The discovery of natural gas in the eastern Mediterranean is at the heart of Cyprus’s foreign and economic policy, Kasoulides said, and there is “great scope” for Cyprus, Lebanon, Israel, Palestine and Egypt to cooperate in energy.

“Cyprus is the only country which is part of the region, but not party to the problems of the region and can therefore play a useful role,” Kasoulides said.

The first priority in energy is to build a liquefied natural gas terminal on Cyprus’s southern coast after Noble Energy Inc. last year discovered as much as 5 trillion cubic feet of natural gas off the coast, Kasoulides said. While the finding isn’t enough to make a project viable on a standalone basis, the plant could be used for exporting gas from elsewhere in the region, including from Israel.

Total SA and Eni SpA are also due to begin exploring for additional deposits in Cypriot waters this summer, Kasoulides said.

As European nations look for ways to cut reliance on Russian energy, “this enhances the opportunities for Cyprus, but we still need to wait to see about Europe’s plan for sourcing alternative supplies of energy so that we can adapt ourselves accordingly,” Kasoulides said.

[Bloomberg]

ekathimerini.com , Wednesday June 4, 2014 (10:50)  
Nicosia says reforms are bringing results
TAIPED waits for green light from Eurostat
Trade deficit shrinks on big drop in imports
SMEs unable to claim subsidies
Samaras pledges action after flash floods in Athens
Authorities began on Saturday assessing the damage done by flash floods in various parts of Athens a day earlier, with Prime Minister Antonis Samaras pledging that all those affected would b...
No court hearings for civil cases
Greek courts are to stop conducting hearings, which include witness questioning, for civil cases, according to plans drawn up by the Justice Ministry. Kathimerini understands that in a bid t...
Inside News
BASKETBALL
A win is a win is a win for Olympiakos
A bad Olympiakos defeated a worse Laboral Kutxa 63-57 to make it two out of two in the Euroleague on Friday. In a game where the two teams had an overall field goal rate of about one in thre...
SOCCER
Panathinaikos snatches point at Eindhoven
Panathinaikos offered its fans a glimpse of its glorious past in European competitions snatching a draw at PSV Eindhoven, on an otherwise bad night for Greek soccer in the Europa League, as ...
Inside Sports
COMMENTARY
End of reason, end of humanity
The effects of a slew of new and increased taxes introduced since the start of the crisis were first observed in the wages of those still fortunate enough to have jobs, who saw their take-ho...
EDITORIAL
Banks need to step up
What has been leaked so far regarding the results of the stress tests on Greece’s lenders, which are due to be published on Sunday, appears positive. Greece needs a healthy, private banking ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Nicosia says reforms are bringing results
2. Samaras pledges action after flash floods in Athens
3. No court hearings for civil cases
4. Greece’s lenders seem adamant that gov’t must act on bailout commitments
5. Future of Attica trash set to become clearer
6. Policeman admits to murder of his cousin-in-law
more news
Today
This Week
1. End of reason, end of humanity
2. Banks need to step up
3. Samaras pledges action after flash floods in Athens
4. Greece’s lenders seem adamant that gov’t must act on bailout commitments
5. Nicosia says reforms are bringing results
6. No court hearings for civil cases
Today
This Week
1. The past, present and future of the Greek debt crisis
2. Greece’s closed society is central to its current malaise
3. Greece must stick to reforms, says Schaeuble
4. At least 11 banks to fail European stress tests, three in Greece, report says
5. Cyprus to block Turkey's EU talks after EEZ violation
6. Stop moaning and get in the game
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.