19/12/24

The Cypriot government is “ready” to begin consultations with both Greece’s independent transmission system operator ADMIE and the country’s energy ministry to find an agreement on “all matters” related to the Great Sea Interconnector, Energy Minister George Papanastasiou said.

On this matter, he was asked about reported “American concerns” over the feasibility of the interconnector, but was swift to point out that they are not “American concerns”, but rather concerns expressed by the American consulting firm the government has appointed to aid to evaluate the cost-benefit analysis submitted to the government by ADMIE. “The company has provided some observations, some suggestions, and some amendments to some of the agreements proposed by ADMIE and which mainly concern future investors and shareholders,” he said.

The company, in their report, said it is “unclear whether the development and utilisation of the Great Sea Interconnector will ultimately decrease the cost of electric power for Cypriot consumers”. Additionally, it said the cost-benefit analysis’ evaluation of the impact of the project on the reliability of Cyprus’ electricity system is “lacking”, and that there was “no assessment of how the Cyprus to Israel connection (if built) will affect the commercial outcomes of the Greece to Cyprus connection”.

Kathimerini reported that critical questions surrounding the electrical interconnection have been raised in a letter from the Chamber of Engineers (ETEK) to the Ministry of Energy. The letter highlights concerns about the project’s cost, economic feasibility, technical studies, and potential consumer benefits.

Cyprus will respond in the coming days as to whether it will accept Chevron’s development and production plan for the Block 12 Aphrodite gas field, Energy Minister George Papanastasiou said. The latest iteration of the plan was submitted by the Chevron in September following the rejection by the government of a previous proposal, particularly the consortium’s request for a floating production unit (FPU). The revised plan would see the gas extracted from Aphrodite connected to an FPU, which would be connected to liquefaction infrastructure in Egypt, instead of creating new such infrastructure in Cyprus. The hope is to have discussions concluded by the end of January 2025 so that the extraction can go ahead.

Energy Minister George Papanastasiou  reconfirmed that drilling in the Block 5 area (‘Electra’) by ExxonMobil field would begin in mid-January.

ExxonMobil has two prospects in Cyprus’ Exclusive Economic Zone (EEZ) and the company has described Electra as “a very large prospect”

After a heated three-day debate, the state budget was voted through in parliament, with the backing of Disy, Diko, Elam, Edek, Depa and independent MP Andreas Themistocleous.

The budget for 2025 got a total of 37 votes in favour and 18 against, with Elam stipulating it was voting against any funds that would go towards migration.

Casting a negative vote were Akel, the Greens, independent MP Alexandra Attalidou and independent socialist MP Kostis Efstathiou.

Finance Minister Makis Keravnos expressed his gratitude to political parties that voted in favour of the budget for the “responsible stance” they demonstrated.

The 2025 state budget marks an increase in expenditure and significant changes in revenue and spending. Total expenditure for the budget amounts to €9.4 billion, reflecting a 3.25 per cent increase compared to the 2024 budget, while total projected revenues are expected to reach €11.75 billion, marking a 4.1 per cent increase.

Thousands of people will benefit from the expected reductions in some banks charges and preferential interest rates for vulnerable groups that banks are set to announce, Finance Minister Makis Keravnos said.

The minister was speaking following a meeting led by President Nikos Christodoulides with the CEOs of Bank of Cyprus and Hellenic Bank.

“Some charges are expected to decrease, and interest rates will become more favourable for certain social and population groups, such as consistent borrowers, pensioners, young people (especially those facing housing issues), small businesses and residents of remote areas,”.

The request of a 49-year-old German woman, accused of usurping Greek Cypriot land in the occupied territories, to be released on parole was rejected.

Her lawyer, among other things, raised the issue of translation, which according to him, affected the defense and rights of the 49-year-old (translation of witness material and problems in communication with his client).

He also raised the issue of degrading and inhuman treatment but the Criminal Court was not convinced.

The cabinet approved changes to its start-up visa programme to make it more attractive and effective, Deputy Minister for Research, Innovation and Digital Policy Nicodemos Damianou said.

The revised scheme, which has already brought 21 start-ups to Cyprus, allows founders and senior executives from non-EU countries to enter, reside and work in Cyprus, either individually or as teams, to establish new ventures or relocate existing start-ups.

INBnews reported that Cyprus is evolving into a magnet and a pole of attraction for foreign direct investment (FDI).

In 2023 foreign investments in Cyprus reached 3.2 billion euros, while 2,500 new jobs were created. The bulk of foreign direct investment (FDI) flowing into the Cypriot economy has reduced its reliance on the traditional triad of real estate, tourism and services, creating a new pillar of economic activity, that of technology. The technology sector contributes to over a tenth of Cyprus’ €32 billion GDP and employs around 17,000 people – around 3.5% of the workforce. By mid-2024, over 270 companies, of which 70 are international technology companies, had completed the relocation process through the Business Facilitation Unit (BFU) of the Ministry of Energy, Trade and Industry.

The Deputy Ministry of Research, Innovation and Digital Policy has launched the first Generative AI application in the public sector – a “Digital Assistant” on the gov.cy portal.

The cost of Christmas dinner in Cyprus has risen significantly this year, according to a new survey by the Cyprus Consumers Association. The study revealed sharp increases in staple ingredients, with tomatoes surging by 131 percent and cucumbers by 113 percent, while fresh meat prices rose by an average of 20 percent. Some items saw decreases, with merlin oranges and onions dropping by 17 and 15 percent respectively.

The Cyprus Shipping Chamber (CSC) announced that its director general Thomas Kazakos, has been appointed secretary general of the International Chamber of Shipping (ICS).

This makes Kazakos the first Cypriot to lead the global organisation. His term is set to begin on April 1, 2025.

17/12/24

The Cyprus Mail reported that the cost benefit analysis over the Great Sea Interconnector has dampened prospects for its viability, as it questions whether it can actually lower energy costs for consumers.

The analysis was carried out by Charles River Associates and notes:

“We find that it is unclear whether the GSI represents the optimal solution for Cyprus to 1) meet renewable energy targets and 2) lower costs to the Cypriot consumers.”

It said a comprehensive analysis of the effect of the project on system reliability “is lacking, and there is no assessment of how the Cyprus to Israel connection (if built) will affect the commercial outcomes of the Greece to Cyprus connection.”

Additionally, renewable energy benefits associated with the GSI “could be muted as solar power produced in Greece could offset anticipated solar power produced in Cyprus.”

Depending on power market dynamics in Greece, Cyprus and Israel, anticipated potential wholesale power price reductions in Cyprus could be impacted.

The analysis expressed concern over the Nexans contract, as it said it “provides a robust outline for delivering the work, but a number of clauses leave open opportunity for cost increases and liabilities to the project sponsors.”

It described the financial model as one that “generally functions as expected but suffers from poor or unsubstantiated assumptions”.

It suggested that to better understand the value of the project for the Cypriot people, a cost benefit analysis from Cyprus’ standpoint should be carried out, to “determine whether GSI represents the most appropriate solution to meet the RoC’s goals.”

AKEL party MP Irene Charalambidou has written to Auditor General Andreas Papaconstantinou requesting information about recent developments in the Cyprus-Crete electrical interconnection project and financial claims made by Greece’s power grid operator against Cyprus’s energy regulator. In her letter, Charalambidou specifically enquired whether the Audit Office has forwarded its findings to the European Public Prosecutor’s Office (EPPO), and if not, when it plans to do so “given recent developments”.

The MP referenced recent and older reports by Philenews regarding ADMIE’s financial demands, including the rejection of some claims by both Cypriot and Greek regulatory authorities and its insistence on recovering the full amount it claimed to have paid to EuroAsia to acquire the project rights. Charalambidou expressed concern in her letter about the possibility that funds paid to EuroAsia “may involve suspicious transactions and agreements made when EuroAsia Interconnector was still the project implementer”.

In August 2023 the former Auditor General had notified European and Cypriot institutions about preliminary findings from an investigation into state involvement in the project, which was then still being promoted by EuroAsia Interconnector.

According to the letter, regulatory authorities have approved ADMIE’s recovery of 12 million euros for expenses incurred by EuroAsia Interconnector, primarily for studies and surveys.

However, they rejected claims for costs associated with the Cyprus-Israel and Crete-Attica sections, as well as portions of the 48.8 million euros considered a business decision for project acquisition.

Liberal.gr (Greece) hosted an interview with Yonadav Buber, CEO of BaroMar. The article is entitled:  “The prospect of Greek-Israeli cooperation in energy storage, geopolitical developments and the GSI cable”

The summary notes that Yonadav Buber, CEO of Israeli BaroMar, one of the most innovative companies in the field of energy storage, speaks to Liberal about the prospect of Greek-Israeli cooperation in the storage sector and how the company’s technology can play a transformative role in strengthening the country’s energy independence. He also makes special reference to Greece’s great potential in energy storage, which can constitute a “reference point” not only for Europe, but also worldwide, while also highlighting the multiple benefits that arise from the interconnection of Greece-Cyprus-Israel via the submarine cable. He also emphasizes that, following recent geopolitical developments, priority should be given to energy independence, while also referring to the future of fossil fuels and RES.

Monday marked the start of a three-day debate in parliament on the 2025 state budget, culminating in a vote by the plenary on Wednesday.

The opposition parties – DISY and AKEL (it was much more critical) – launched an attack on everything, especially the financial difficulties faced by citizens due to high prices, housing and interest rates. Left -wing AKEL has stated it will vote against.

The 2025 state budget, as initially submitted, records an increase in expenditure and significant changes in revenue and spending. Total expenditure is projected at €9.4 billion, reflecting a 3.25 per cent increase compared to the 2024 budget, while total anticipated revenues are expected to reach €11.75 billion, marking a 4.1 per cent rise.

Philenews reported (citing a Turkish Cypriot newspaper) that since 2019, the number of permits granted by the occupation regime in the North to foreigners to acquire real estate approached 20 thousand. Of those, over 5 thousand made use of this “right”.

The Russia-Ukraine conflict and the Covid-19 pandemic caused a significant increase in applications for real estate. In the last 24 years, the number of foreign nationals who have applied to purchase real estate reached 54,606.

Philenews reported that the acceptance (by the govt.) of the proposal to assign the management of the marina to the Cyprus Maritime and Maritime Institute (CMMI) may have satisfied Larnaca’s stakeholders, however, the intense disagreement over the port remains.

Most of the city’s stakeholders insist that the Ports Authority’s proposal for €86 million worth of projects to develop the port in three phases must be examined, something that will also be raised at the Larnaca Development Committee meeting with the President of the Republic.

“We will explain to the President why we believe that the decision to have a port manager for five years is detrimental to development. We will ask them to explain to us why they are rejecting the Port Authority and its proposal for projects,” the mayor of Larnaca said, indicating that if they are not satisfied, they will proceed with the protest announced for January 11.

President Christodoulides met bank heads for a “useful and constructive exchange” on his proposals for interest rate changes to help vulnerable groups.

The proposed measures will be brought before the finance minister, after their evaluation by the bankers.

The Cyprus Chamber of Commerce and Industry (Keve) officially announced the appointment of Philokypros Rousounides as its new secretary general.

Rousounides will assume his duties on January 1, succeeding the current secretary general, Marios Tsiakkis who is retiring.

16/12/24

Philenews reported that the legal advisor of the state could not have been clearer and more warning to the Cypriot Government regarding his recommendations for the planned participation of the Republic of Cyprus in the investment capital of the Great Sea Interconnector (GSI).

The American firm Curtis, Mallet-Prevost, Colt and Mosle LLP submitted to the Republic of Cyprus the legal due diligence study for the project study which does not leave the slightest room for the Cypriot Government to participate in the share capital of GSI, unless the content of the “concession agreement” that ADMIE (operator) submitted to the Cypriot Energy Regulator dramatically changes.

The damning observations of the American law firm have also been transmitted to the Greek Government. Without a complete reformulation of the concession agreement, the Cypriot Government is expected to be driven to the wall by political forces and Cypriot public opinion, in the event that it consents to its participation in the share capital of GSI. According to the study, the terms and conditions proposed by ADMIE through the “concession agreement” for Cyprus’ investment in the share capital of GSI “are not sufficient (and satisfactory) to attract serious strategic investors to GSI”.

The Great Sea Interconnector (perhaps with Cyprus holding approximately 30% of the shares) will have the responsibility to secure the financing of the project (with loans of one billion euros or more) as well as the repayment of the loans or coverage of the guarantees, but the main decisions regarding the construction subcontractors will be made by ADMIE. Who will remain the owner of the project and its manager (and the recipient of the revenues), when it is operational.

All this means that the Great Sea Interconnector – instead of ADMIE– would end up absorbing losses and liabilities while  ADMIE would retain control of the project asset (which should belong to the company that will build the project-GSI).  

The advisors also note that ADMIE, and not GSI, will retain control of the 658 million euro European grant. Any investment (by the Republic of Cyprus) in the share capital in the Great Sea Interconnector could lead to financial losses greater than the envisaged equity investment in GSI (100 million euros). Elsewhere in the report, the firm predicts that the potential losses for the Republic of Cyprus could be much greater than the 100 million capital it may initially put up.

Addressing concerns about potential challenges in Cyprus’ involvement with the Great Sea Interconnector (GSI) project, Minister of Energy George Papanastasiou clarified that the project was progressing as planned and dismissed reports of significant delays or issues. He said Cyprus has political and financial support, including an annual contribution of €25 million for up to five years, capped at €125 million. He added that Cyprus has access to European funds that could be used to become a shareholder in the project, though this would depend on meeting specific conditions. He noted that a commissioned evaluation study conducted a cost-benefit analysis and suggested amendments to documents provided by the project’s implementing body (ADMIE). On the question of Cyprus’ involvement without ownership, the minister remarked that this is one of the considerations under discussion. He stressed that any financial contribution from Cyprus should ensure proportional ownership, reflecting its capital investment.

Chinese authorities have granted clearance for the departure of Prometheas, a floating natural gas gasification unit owned by Cyprus-based Natural Gas Public Company (ETYFA). A potential destination is Greece, with speculation pointing to facilities in Alexandroupolis, where the ship could undergo certification as a floating storage and regasification unit (FSRU). However, Asian locations are also under consideration for final modifications to the vessel. These updates would ensure its readiness for certification and eventual deployment at a gasification terminal. The unit could temporarily be deployed at another location until the infrastructure at Vasiliko in Cyprus is ready. This marks the beginning “of a new era for our energy sector,” government spokesman Konstantinos Letymbiotis said on X.

An article by the Middle East Economic Survey (MEES) entitled “Cyprus hopes for a major discovery by Exxon in the Electra target which will revitalize the country’s natural gas sector” notes that ExxonMobil believes that the upcoming drilling in in block 5 of Cyprus will find up to 30 tcf (trillion cubic feet) of natural gas. This would rival Egypt’s Zor and Israel’s Leviathan as the largest find in an area that the US ranks alongside Guyana as the largest new hydrocarbon discovery in the last 30 years. Commenting on the article the Minister of Energy George Papanastasiou 

said “we should wait for the drilling to take place because the studies may show some optimistic geological structures, but if we don’t drill we cannot know exactly what is there”.

In an interview with Phileleftheros, the Cypriot Vice President of the European Investment Bank (EIB), Kyriakos Kakouris, states that Cyprus’ priorities should include increasing the capacity of renewable energy sources, implementing the 10-year investment plan of the Electricity Authority of Cyprus (EAC), which will contribute, to the modernization of the transmission and distribution network. At the same time, efforts to complete the natural gas regasification terminal in Vasiliko should be accelerated. The specific project remains among the EIB’s key priorities for Cyprus and wants to see it completed. As regards the Greece-Cyprus electricity interconnection, there is a political agreement between the two countries and the EIB is in contact with the Greek and Cypriot governments, as well as with the Commission, to assess the project in the context of revised National Energy and Climate Plans.

The inauguration of two new solar parks is set to enhance the Electricity Authority of Cyprus (EAC)’s electricity production, marking a significant step toward green energy development. It will also support efforts to lower electricity prices. The Achera A and C solar parks, a collaboration between the EAC and the Holy Archdiocese of Cyprus, will supply electricity to the EAC at a cost of 5.1 cents per kilowatt-hour.

Two Hungarian women (that were living in Cyprus) facing charges tied to the alleged illegal sale of Greek Cypriot properties worth €58.5 million in the occupied North will continue to stay under detention until the next hearing, set for February 24. Last week the women had appealed their detention, arguing they were being treated unfairly but the Court of Appeal rejected their claims. The Supreme Court upheld this decision. The case has drawn attention across Cyprus, as property disputes in the occupied areas remain a sensitive issue for many.

A protest at Larnaca port has been put on hold, pending an “open agenda” meeting with President Nikos Christodoulides within a fortnight.

The protest was against the appointment of an administrator but the ministry of Transport sent a “satisfactory” letter to the municipality saying that the city’s marina would be given to the Cyprus Marine and Maritime Institute. However, the minister’s letter did not satisfy them on the issue of the port as Larnaca’s development committee expressed “intense reservations” regarding the temporary administration of the port by a private party. They want Larnaca port to be managed, for the time being,  by the Cyprus Ports Authority. The protest has been rescheduled for January 11, 2025.

Cyprus has reached a significant financial milestone, with its credit rating now firmly in the “A” category from all three major rating agencies—Moody’s, Fitch, and Standard & Poor’s. The latest upgrade by Standard & Poor’s was welcomed by President Nikos Christodoulides, who described it as a testament to the nation’s collective sacrifices and disciplined economic strategy. This achievement consolidates Cyprus among the most reliable economies in the European Union. He added that the government, institutions, and citizens now expect banks to take advantage of the favourable conditions by reducing loan interest rates and narrowing the gap between deposit and lending rates. The move to the “A” category has far-reaching benefits that include:

• Lower borrowing costs for both the government and businesses, thanks to enhanced creditworthiness.
• Increased economic stability, fostering job security and higher wages.
• Strengthened public finances, allowing for greater investment in critical sectors like healthcare, education, and infrastructure.
• Boosted foreign investment, particularly in high-value industries, creating well-paid jobs.

Two Russian nationals who obtained Cypriot passports in 2016 are under investigation in France for alleged money laundering, according to French media reports. The case came to light after MP Alexandra Attalides raised questions in parliament following an article published by the International Consortium of Investigative Journalists (ICIJ) on 23 October 2024. According to the ICIJ report, French authorities have seized assets worth $75 million connected to a money laundering investigation involving the two Russians, who allegedly financed property purchases on the French Riviera through suspicious channels. Interior Minister Constantinos Ioannou said that “the answer is confidential”. Sources told Philenews that both the Ministry of Justice and the Ministry of Finance are expected to become involved in examining the case for potential criminal offences and tax implications, should sufficient evidence emerge.

The proposed bill to impose a tax on banks’ windfall profits would jeopardise the stability of the financial system, government spokesman Konstantinos Letymbiotis said last Friday.

His comments came after the House plenary session rejected left-wing Akel’s proposal in a tied vote of 25 in favour and 25 against, with four abstentions. 

Left-wing Dialogos reported that according to an IMF report entitled “Bank Profits and Bank Taxes in the EU” banks in Cyprus enjoy the highest profit margin from interest rates among financial institutions in eurozone member states, but at the same time pay the lowest taxes.

This confirms the correctness of the bill, which was submitted by Akel but was not approved.

Cyprus’ economy is projected to maintain its resilience in 2025, with an anticipated growth rate of 3.1 per cent – significantly higher than the EU average – Finance Minister Makis Keravnos said.

He highlighted the strong economic performance in 2024, including a decline in unemployment to near full employment levels and inflation easing to approximately 2 per cent. In terms of public finances, Cyprus was among the best performing EU countries.

13/12/24

ENERGY/ECONOMIC NEWS

President Nikos Christodoulides announced his vision of transforming Cyprus from a consumer of defence products to a producer.

Addressing the opening of the 2nd international defence and security conference ‘Battlefield ReDEFiNED 2024’ in Nicosia, Christodoulides announced the preparation of legislation to institutionalise the high-tech defence industry aiming to strengthen national defence and stimulate economic growth. He also announced the institutionalisation of industrial collaboration defence programmes, the establishment of the defence research, technology and industry council, the establishment of the national registry of defence industry manufacturers in collaboration with the Cyprus chamber of commerce and industry, the increase of funding defence research and development, and government funding for national pavilions at international exhibitions.

He added that 16 Cypriot companies, with the support of the defence ministry, have secured participation in 37 different contracts of the European defence industrial development programme as well as of the European Defence Fund.

Parliament has rejected legislation proposed by left-wing AKEL party that would have imposed a 5% levy on bank profits for 2024 and 2025.

The bill, which would have raised an estimated €100 million over two years to fund housing schemes and interest rate subsidies, was defeated with 25 votes against from DISY, DIKO, DEPA parties and MP Alexandra Attalidou, while 25 MPs voted in favour, including members from AKEL, ELAM, EDEK, the Greens, DIKO MP Zacharias Koulias and independent MP Kostis Efstathiou. Four MPs abstained from the vote.

President Christodoulides had warned against proposals to tax excess bank profits.

The Cyprus Chamber of Commerce & Industry (Keve) called for “bold decisions and substantive measures across nearly all sectors of the economy to sustain the country’s developmental trajectory”.

Speaking at the chamber’s annual general meeting, Keve president Stavros Stavrou, emphasised that to maintain the momentum of our economy, action must be taken on two fronts.

Firstly, he called for “immediate initiatives to swiftly resolve domestic issues to fortify our economy”.

This, he said, should be followed by “new actions to capitalise on emerging opportunities both within and beyond Cyprus”.

Stavrou delivered strong criticism of the state, describing it as the economy’s “biggest patient” and proposed a series of recommendations.

President Nikos Christodoulides also addressed the assembly . 

Kathimerini reported that the ongoing legal battle between the Republic of Cyprus and the  Greek contractor (Intrakat) over the Paphos-Polis Chrysochous motorway project continues to create a complicated mess.

One of the key points of contention is a €7.2 million letter of guarantee with courts in Greece & Cyprus involved.

Intrakat also has other claims in court.

The Cypriot economy showed robust growth across key sectors during January-October 2024, according to the Cyprus Statistical Service (Cystat).

Μanufacturing output rose by 3.3 per cent, building permits marked a sharp increase of 46.5 per cent & motor vehicle registrations rose by 11.5 per cent.

Tourism also saw growth, with arrivals increasing by 4.6 per cent.

However, total imports of goods fell by 12.3 per cent while exports decreased by 5.3 per cent.

Cyprus is set to introduce a new AI-powered digital assistant on its gov.cy platform from 18 December 2024, offering citizens round-the-clock access to government information services.

Deputy Minister for Research, Innovation and Digital Policy, Nicodemos Damianou, announced the initiative as part of the broader “Digital Citizen” project, marking the government’s first implementation of generative AI technology in public services.

The chatbot-style assistant, developed in partnership with Microsoft, will operate similarly to ChatGPT through a conversational interface.

President Nikos Christodoulides reiterated the government’s commitment to bolstering Cyprus’ construction and real estate sectors during the annual general assembly of the Cyprus Property Developers Association.

The industry contributes 15 per cent of GDP and employs over 40,000 people.

12/12/24

ENERGY/ECONOMIC NEWS

Philenews reported that a major hurdle in securing departure clearance for the FSRU from Cosco’s Shanghai shipyard was cleared yesterday.

The Lloyd’s Register has approved certification for Prometheus (formerly LNG carrier Galea), which has been converted by Chinese CPP into a Floating Storage and Regasification Unit (FSRU.

This certification enables the vessel to depart Shanghai for its lengthy journey to Cyprus, with a planned stopover in Singapore.

The Lloyd’s certification specifically covers the vessel’s seaworthiness for port-to-port travel, rather than its FSRU operations for LNG regasification. The operational certification will be issued after final modifications are completed.

Before reaching Vasilikos, Prometheus must undergo testing at natural gas processing facilities in another country to receive operational certification under real regasification conditions.

While Egypt or the United Arab Emirates were initially considered likely locations for certification, sources indicate that discussions are now focused on transferring the vessel, which cost nearly 200 million euros, to the new natural gas regasification facilities in Alexandroupolis, Greece.

INBNews reported that the Cyprus Institute, in collaboration with Baromar – an innovative energy storage company – announced the launch of a joint research project on energy storage to be carried out at the Cyprus Institute’s PROTEAS Research Facility.

This initiative constitutes the largest private sector investment in a research project ever made in Cyprus, and serves as a precursor to new collaborations in the fields of renewable energy and energy storage.

Baromar is a global company that has developed a simple, cheap, and environmentally friendly energy storage solution. The operation of the project at PROTEAS is scheduled for next year. Baromar will then proceed to implement projects that will provide large amounts of energy (<200 MW) for longer durations (<8 hours), thus helping countries achieve their green transition goals and significantly reduce electricity prices for consumers.

The project involves the installation and testing of an innovative renewable energy storage system in compressed air stored in underwater tanks. This pilot system will test the technical and economic feasibility of such a solution and pave the way for innovative technologies to enter the global energy storage market, especially for longer-term storage. This will be the first compressed air energy storage project built in the EU in the last 50 years.

Disy and Akel parties have opposite views over the contentious ‘bank tax’ bill set to go to plenum today.

Submitted by left-wing Akel, the bill aims to tax banks on their ‘windfall profits’ and has prompted harsh opposition from the central bank director who warned MPs last week that this would deter investments.

The two women from Hungary, who are accused of usurping Greek Cypriot land in the occupied territories, worth over €58 million, will appear before the Nicosia Criminal Court tomorrow. On Tuesday, the Court of Appeals, rejected a request by the lawyers to remain free on conditions.

An ambitious plan to ensure every household and every sector has the water it needs was presented by Agriculture Minister Maria Panayiotou, who said reservoirs were still just a quarter full this year.

The programme includes a number of actions that include, in the short-term, the building of four mobile desalination plants, connecting communities with the grid and using wells in for irrigation.

Cyprus Business News reported that Cyprus-headquartered Blendiser Corporation and other companies, associated with billionaire Roman Avdeev, have finalised the sale of his remaining stake in Rossium Group and other assets, completing the exit from all Russian business holdings. The billionaire has indicated that he plans to move to Cyprus with his family.

10/12/24

Cyprus’s economy continues to show robust growth while major European economies are flirting with recession, maintaining a growth rate several times higher than the European average, new Eurostat data shows.

GDP grew by 3.8 percent year-on-year in the third quarter of 2024, compared to the eurozone’s 0.9 percent.

Quarter-on-quarter growth reached 1 percent, outperforming the eurozone’s 0.4 percent increase.

Cyprus’s 2025 budget and Stability Programme forecasts real GDP growth of 2.9 percent in 2024.

The Central Bank of Cyprus projects higher growth of 3.5 percent for 2024, up from 2.5 percent in 2023.

Cyprus Chamber of Commerce & Industry (Keve) president Stavros Stavrou is set to deliver a speech addressing key economic and business issues at the chamber’s annual general meeting on Thursday.

The event will be held in Nicosia and will feature a keynote address by the president Nikos Christodoulides.

According to a statement, Stavrou will outline the chamber’s comprehensive proposals for bolstering the economy and the business sector.

The United States and Cyprus have reinforced their joint commitment to fighting illicit finance, unveiling plans to enhance Cypriot capabilities in detecting and prosecuting financial crimes, according to a joint press release from the Republic of Cyprus and the United States Embassy.

The collaboration, which began in March 2024, has seen the U.S. Department of Justice (DOJ) and Federal Bureau of Investigation (FBI) working closely with Cypriot authorities.

The financial wellbeing of Cypriot citizens has marked a significant decline, according to the results of the Financial Wellbeing Index 2024.

The overall index value stands at 51.4 points (base 100), down from 56.7 points in 2023, highlighting the increasing challenges faced by citizens due to financial insecurity, insufficient savings and stress.

New data from Landbank Analytics has mapped the highest-demand residential areas across Cyprus’s districts for the period January to September 2024.

In Nicosia district, there were 161 house sales totalling €49.8m and 1,194 apartment sales worth €236.9m.

Limassol district recorded 237 house sales worth €165m and 1,469 apartment sales totalling €820m.

Larnaca district registered 191 house sales worth €64.35m and 1,113 apartment sales totalling €218.8m.

Paphos district saw 243 house sales worth €149.6m and 416 apartment sales totalling €138.4m.

In free Famagusta district, there were 86 house sales worth €28.6m and 143 apartment sales totalling €32.8m. Paralimni dominated both categories with 50 house sales averaging €412,000 and 105 apartment sales averaging €262,000.

Motor vehicle registrations in Cyprus rose by 10.1 per cent from January to November 2024, with the growing popularity of electric and hybrid vehicles driving the market shift.

Electric car registrations increased to 4 per cent, while hybrids surged to 36.9 per cent.

A bill to increase betting tax from 3% to 4.5% to help football clubs pay off their tax debts is expected to pass in parliament.

09/12/24

The lawyers of Israeli property developer Simon Mistriel Aykut, who stands accused of having developed and sold €43 million worth of property on Greek Cypriot land in the north, objected to the case against him on Friday, saying they do not believe he will receive a fair trial.

Aykut’s lawyer Maria Neophytou said her client will not receive a fair trial as it is impossible to summon witnesses who live in the north to a court in the Republic. She argued that Aykut has stated “since the beginning” that he was not involved in the purchase or sale of property, but that “his son did everything”. She also said there can be no transfer of information from the Turkish Cypriot police nor from the north’s companies register as the court recognises neither institution.

Additionally, she said that anyone who comes from the north with any suspicion that they have bought or sold land is arrested, offering up a list of would-be witnesses from whom Aykut’s company had purchased property.

Prosecution lawyer Andreas Aristides argued that according to Cypriot law, it is typically examined after the fact whether a trial is fair or not, so that the court has all the evidence before it when making such a decision.

Judge Christiana Parpotta said the court will issue a decision on the objection on December 20. Until then, Aykut will remain in custody. 

INBNews reported (includes photos of how it will look like) about the collaboration between Premium Access Group (the shareholders are Evgeni Leibovich and Shaul Keinan) and Thanos Hospitality Services (which will take over the management of Palm Beach Resort) to create a mixed development project that will includes 5 star hotel, residences & other amenities.

Philenews reported that the government is reconsidering its sudden decision to hand over Larnaca’s port and marina management to private operators for five years, following intense local opposition. Sources indicate that authorities are now exploring the possibility of transferring marina management to a local organisation rather than a private entity. However, the port’s future management remains unclear, with strong local opposition to privatising what many consider a profitable public asset. Larnaca stakeholders want it to remain under the operation of the Cyprus Ports Authority, that recently made a proposal to the govt. for development of the port at a cost of nearly 90 million euros. This proposal was not taken into consideration by the govt.

It is now unclear, both for the port & marina, what will happen in the long term. President Christodoulides confirmed potential changes to the initial decision. Despite assurances, the Larnaca Municipal Council has unanimously voted to organise protests outside the port on the 14/12/24 with the coalition parties DIKO and EDEK also participating, whose MPs Christos Orphanides and Andreas Apostolou openly expressed their disagreement with the government decisions.

Credit rating agency Fitch upgraded Cyprus’ credit rating from BBB+ to A-, becoming the second such agency in the space of three weeks to give Cyprus an ‘A’ grade.

The agency said it had upgraded Cyprus’ score on account of “the rapid reduction in public debt, strong fiscal surpluses, and limited fiscal risks”, as well as the “strong growth potential of the Cypriot economy, the positive medium-term prospects, and the improvement of the banking sector”.It pointed out that Cyprus “had one of the largest reductions in public debt relative to gross domestic product (GDP)” of all the countries they had evaluated this year, and added that its current forecasts suggest that the trend of debt reduction will continue.

The agency expects that Cyprus’ debt to GDP ratio will fall to 60 per cent next year.

Additionally, it said, it expects Cyprus’ government surplus to reach 3.9 per cent of GDP this year. 

Sigmalive reported that the clock is ticking for multinationals and other large companies operating in Cyprus and whose revenues exceed €750 million, since, as everything shows, they will soon say ‘goodbye’ to the favorable tax rate of 12.5%. The Republic of Cyprus must harmonize with the European Directive that provides for the securing of a global minimum level of taxation for these companies, thus marking the end of an era for one of our country’s strongest “cards” in its efforts to attract foreign investment.

A fire broke out on Friday at the Paphos desalination plant, causing extensive damage. The fire almost completely destroying the plant. Water authorities, agricultural officials, and local representatives have warned of significant impacts on the region’s water management as it has affected one third of the water supply of Paphos. The plant normally produced 15,000-20,000 cubic metres of water daily, essential for both drinking water and agricultural needs. The Agriculture Ministry will hold an emergency meeting to address the crisis and plan immediate actions to compensate for the loss. The incident is expected to accelerate plans for new desalination facilities across the island.

Police are investigating a case concerning dozens of trapped property buyers in Limassol, more than three years after the initial complaint was filed against a liquidator’s handling of company assets. The investigation, launched after lawyer Sofronis Sofroniou’s April 2021 complaint, centres on allegations of fraudulent practices spanning 30 years that have left numerous families at risk of losing their properties.

Cyprus has intensified its efforts to expand its Research and Development (R&D) landscape through a recent visit to Indonesia.

Chief Scientist Demetris Skourides and Ambassador Nikos Panagiotou held high-level talks with leading Indonesian research officials in Jakarta.

OPAP Cyprus is set to introduce Eurojackpot, Europe’s largest lottery game, to the Cypriot market. The game, which currently operates in 19 European countries, offers jackpots of up to €120 million through bi-weekly draws held in Helsinki, Finland. The game’s introduction requires Cabinet approval for exclusive rights. OPAP Cyprus, which currently operates eight lottery games in the Republic (including Lotto, Joker, and Kino), has submitted a proposal to add Eurojackpot to its portfolio.

Total beer deliveries in Cyprus dropped to 2.12 million litres in November, down 33% from 3.16 million litres in the same month last year, according to Cyprus Statistical Service data. Domestic market deliveries fell 33.7% to 1.96 million litres, while exports decreased 23.2% to 0.16 million litres from 0.21 million litres in November 2023.

05/12/24

INBNews reported that the aim of the collaboration between Premium Access Group (the shareholders are Evgeni Leibovich and Shaul Keinan) and Thanos Hospitality Services (which will take over the management of Palm Beach Resort) is the creation of an ambitious project in Larnaca & the transformation of the historic hotel into a high-standard resort.

Development projects at Larnaca port and marina and works at Vasiliko port will be going ahead, the transport ministry has said, while concerns have been voiced regarding a private company taking over Larnaca port temporarily.

The transport ministry said the government had stated from the onset that taking over the administration of Larnaca’s port and marina would be a temporary arrangement until private investors take over and would be cooperating with the ad hoc committee of Larnaca to draft a strategic plan. The Cyprus Shipping Association expressed its concern over the decision to delegate the management of Larnaca port to a private company.

In recent days there have been reactions from political parties & Larnaca stakeholders about the plans of the govt. while also boat owners are reacting demanding lower docking fees.

Foreign investments in Cyprus amounted to €3.5 billion last year, according to President Christodoulides who was speaking at a conference.

He also mentioned, among other things, that Cyprus “is on a remarkable economic course.

Cyprus achieved record-breaking tourism results in 2024, according to Deputy Minister of Tourism Costas Koumis.

October set a new benchmark, with arrivals surging by 26 per cent compared to 2022 & revenues by 31%.

Koumis praised the sector’s resilience in the face of challenges such as geopolitical instability in the Middle East, economic pressures in Europe, and ongoing issues in the aviation industry.

According to the Cyprus Chamber of Commerce President Stavros Stavrou seasonality remains a persistent challenge.

The President of the Association of Travel Agents Harris Papacharalambous noted that Cyprus ranked sixth in the EU for tourism’s contribution to GDP at 12.9 per cent while issues such as high operational costs, staff shortages, connectivity gaps and competition from the occupied north remain pressing concerns. 

Real estate and IT are the key drivers of Cyprus’ third quarter services growth.

Real estate activities recorded an 11.5 per cent increase compared to the same period in 2023 while information and communication activities followed, rising by 8 per cent.

Cyprus showcased its advantages as a tax destination during a gathering in London, highlighting benefits for high-net-worth individuals amid UK tax reforms.

More than 150 participants attended the event, including more than 120 professionals from the UK—such as lawyers, accountants, private bankers, and family office managers—and over 30 experts from Cyprus.

02/12/24

ENERGY RELATED NEWS

Energean CEO Mathios Rigas has called on governments to develop new export routes from Israel to neighbouring Egypt and Cyprus, as he urged Israel to issue new offshore oil and gas exploration licences to meet rising demand in the region.

ECONOMIC NEWS

Concrete manufacturers and workers are to continue their strike after the failure to reach an agreement over the regulation of overtime pay. Both trade unions and employers’ groups had approved a deal put forward by Labour Minister Yiannis Panayiotou regarding a new collective labour agreement, but trade union Sek announced that the deal did not include any agreement regarding overtime.  The Cyprus Chamber of Commerce & Industry President Stavros Stavrou expressed optimism this morning that the major employer-employee conflict in the ready-mix concrete sector will end today and work will resume immediately. Considerable damage has already been caused to the economy (€80m to €100m).

Philenews reported that Turkey is losing business following a rise in arrests of property usurpers by the Republic of Cyprus and is now increasingly resorting to various other methods to bring in more revenue for the illegal entity in the occupied territories. Turkish magnates are buying Greek-Cypriot properties from foreign nationals, while land developers are approaching Greek-Cypriot owners and on many occasions pressuring them into selling off their land, sometimes also using the so-called ‘compensation committee’. What’s more, even Greek-Cypriots living in the government-controlled areas, appear to be acting as go-betweens, trying to persuade owners to sell their properties to Turkish buyers. This is their contribution, the article notes, ‘to the Turkification of the island’. It is further added that the construction industry in the occupied territories has taken a hard hit.

The government’s plan for a private company to operate the Larnaca port and marina on a temporary basis until a new investor is found to upgrade its infrastructure puts the development in danger, the town’s mayor Andreas Vyras said. He added that the government “did not discuss the plans with us” and that the existence of a temporary private operator may make it more difficult for plans to be devised. “I think they have not thought this through properly & the decision they announced over the marina is a massive risk for Larnaca” saying that the town’s council’s ad hoc committee on the matter will be convened. Philenews reported that there are two reasons that led the government to proceed with the decision to give the management, operation and maintenance of the port of Larnaca to a private company and, at the same time, to separate the two functions of port and marina. The first has to do with the decision already taken to strengthen the regulatory role of the Cyprus Ports Authority (CPA) and the second is for strengthening free competition between the ports. By the government’s decision, the management of the port and the marina will be assigned separately to private companies that, for the next 5 years (after the contracts will be signed), will benefit from the profits but will have no obligation to proceed with development projects, thus freezing the development prospects of Larnaca.

Cyprus’s general government recorded a surplus of €1,431.8 million (4.2% of GDP) in the first ten months of 2024, compared to a surplus of €664.8 million (2.1% of GDP) in the same period of 2023, according to preliminary data.

Supermarkets are sending information to the commerce ministry in time for a pilot e-kalathi application to go into operation before Christmas. The trial app will enable shoppers to make price comparisons for essential groceries but it is unclear whether retailers of all sizes would be able to respond in time.

Cyprus’ average monthly earnings rose by 7.3 per cent in 2023, however, there were stark differences across sectors, according to the Cyprus Statistical Service.

While agricultural workers earned an average of €924 per month, those in finance averaged €4,493, reflecting significant income disparities.

The Cyprus Chamber of Commerce and Industry organized business delegation to Slovakia, and the Czech Republic in collaboration with the Energy Ministry, the Cyprus Trade Centre in Vienna, and the Cyprus-Slovakia and Cyprus-Czech Business Associations.