A total of 50 billion euro move from Cyprus to the Russian market, nearly 16 billion dollars moving from Russia to Cyprus and the Russian deposits in Cyprus are the biggest part of the total 22.7 billion of deposits in foreign currency.
Billion traded between Cyprus and Russia, and the Russian deposits on the island make up the bulk of deposits in foreign currency amounting to 22.7 billion.
Numbers cause dizziness reported yesterday by the speakers at the conference of Economist, during which highlighted the special relationship between Cyprus and Russia in business and finance.
As stated in the discussion on "Strengthening the business and economic relations between Cyprus and Russia, a total of 50 billion moving from Cyprus to the Russian market, nearly 16 billion dollars moving from Russia to Cyprus and The Russian deposits in Cyprus are the biggest part of the total 22.7 billion of deposits in foreign currency.
The competition
However, Cyprus appears to be intense competition from countries such as Luxembourg, the Netherlands, Switzerland and Malta, a competition that Cyprus has the makings to address, mainly because of the positive elements contained in the Avoidance of Double Taxation Treaty signed in October 2010 during the visit of Russian President Dmitry Medvedev in Cyprus.
Huge amounts
Speaking in the debate, Sergei Vasiliev, Director of International Cooperation of the Russian Chamber of Commerce, said "we see Cyprus as a very important partner, and perhaps as a starting point for future relations with the Middle East and Africa and also as a global platform. "
"Now we have about 1.7 billion dollars in investment," he said, adding that this is the most important element of cooperation between the two countries.
It said a total of 50 billion dollars moving from Cyprus to Russia, 70% of which are direct investments, which he described as the most important element, while Russia moved to Cyprus with 15 billion dollars.
In relation to tourism, Mr. Vasiliev said that tourist arrivals from Russia to Cyprus rose by 50% last year reaching 230,000.
Tourism
For his part, President of CCIC Manthos Mavrommatis said that the tourism sector, arrivals from Russia in 2010 had a record of all time, while the prospects for 2011 show further increases.
According to figures provided by Mr. Mavrommatis, the movement of investments from Cyprus to Russia until June 2010 reached 52.18 billion dollars, of which 37.89 billion dollars in direct investment, 1 59 billion in investment portfolios and other 12.7 billion in other investments.
Similarly, the movement of investment from Russia to Cyprus until June 2010 had reached 15.96 billion U.S. dollars, of which 12.66 in direct investment, 220 million in investment portfolios and 3.08 billion . dollars in other investments. The money was invested mainly in financial intermediation, land and construction.
The dynamics of Cyprus as an investor in Russia demonstrates the fact that Cyprus was in the top position of the investors in Russia for the years 2005 to 2008 and in 2009 was in fourth place behind Luxembourg, the Netherlands and China which shows the intense competition faced by Cyprus as the gateway to investment in Russia.
For China, Mr. Mavrommatis explained that this is not a risk for Cyprus because invests its own capital and not a point of investment and capital movements.
It believes Mr Mavrommatis, worsening the position of Cyprus in the classification of investment in Russia is attributable to a summary of the blacklist in December 2008 and the economic crisis.
Stressed, however, that intensive negotiations between the two countries initialed the Avoidance of Double Taxation Treaty in 2009 and signed in 2010 restored the positive climate. "This marks a new era in relations between the two countries, because there are positive elements in the new treaty," he said.
For competitors of Cyprus, Mr. Mavrommatis estimates that are "lagging behind because they are still in the process of renegotiation and uncertainty and we should capitalize on this as it takes."
Second Ukraine
In connection with the testimony, Mr. Mavrommatis said that total deposits amounted to 69.9 billion euros, adding that the total 22.7 billion of deposits in foreign currency (not million), the majority coming from Russian capital, followed by Ukraine.
For the prospects of further cooperation between the two countries, Mr. Mavrommatis noted statement of Dmitry Medvedev during his visit to the island in October 2010, that Cyprus is the preferred channel for foreign investment in Russia.
And Eugene Eugene, a member of the auditing firm PWC, gave emphasis to competition faced by Cyprus from other countries for the top investor in Russia.
"In relation to the future, it is extremely important to protect Cyprus as the main channel for investments to and from Russia," he said and continued: "We have great competition. To achieve this we need to see the bureaucracy here in Cyprus, we must see how we approach many Russian businessmen to come and stay in Cyprus. "
He suggested a review of some aspects of the tax reform of 2003, granting tax incentives for Russian businessmen and attracting Russian capital for projects in Cyprus, which are not implemented due to lack of funding.
Gas opens new chapter
Christos Stylianides, Deputy CEO of Marfin Popular Bank, mentioned the need for precautionary comparative advantages of Cyprus as a gateway to capital movements to and from Russia.
"The advantages of Cyprus features have helped the island become a major regional financial and business center. But should not relax our vigilance and competed against countries such as Luxembourg, Switzerland and Malta, "he said.
He referred to the gas deposits, believed to exist in Cyprus's exclusive economic zone, to emphasize that they constitute a new chapter in economic history and represents an emerging new era of potential cooperation with Russia, both in terms of exploiting funding opportunities in the energy sector and as an attractive destination for Russian investors, given the multiplier effect in ktimatiko sector, tourism, banking and the broader economy.
Finally, in its paper entitled "The value of Russian firms in Cyprus", the Moulin Fiona, Head of Sapienta economics and adviser on economic issues of the Special Advisor to UN Secretary General on Cyprus, Alexander Downer, has estimated that the value of Russian firms in Cyprus is 2.7 billion per year, while excluding the Russians residing in Cyprus, and bank flows, the amount was reduced to 2.1 billion per year or 12% of GDP in Cyprus .
According to Mr. Moulin, between revenues included revenues of EUR 300 million from financial services, 500 million of legal and audit services, 100 million of investments in Russian ktimatiko sector, 28 million from taxes on savings and 34 million in corporation tax by companies.
http://www.sigmalive.com/simerini/business/news/365358
Lana wheres my share?
