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Cyprus-Russia Protocol ratified by Russian Duma
On the 15th of February 2012, the Russian Duma has ratified the amending Protocol to the Cyprus-Russia Double Tax Treaty of 1998, signed on the 7th of October 2010. Cyprus has also ratified this Protocol earlier in August 2011. The application of this ratifying Protocol on 1st of January 2013 will finally remove Cyprus from the so called Russian “black list”, in which Cyprus was included since the 1st of January 2008.
CIPA (Cyprus Investment Promotion Agency) has welcomed this positive ratification of the amending Protocol which confirms the excellent and strong political and economic relationship between Cyprus and Russia which keeps developing. As CIPA’s representative commented, the Cypriot economy will benefit for two main reasons; “firstly from the new Russian investments and secondly by the further strengthening of the security provided to the Russian investors.”
In addition, he noted that due to the fact that Russia is the leading investing country in Cyprus, “this agreement will also contribute to the upgrading of Cyprus as a country with a very good infrastructure for establishing cooperations with international companies.”
Cypriot Lawyers N. Pirilides & Associates LLC
Cyprus Company Formation Multilysis Services Limited
Energy cooperation between Cyprus and Israel. New era for the relation and cooperation levels of the two countries
Israeli Prime Minister Benjamin Netanyahu said that important perspectives will occur through the cooperation between Cyprus and Israel in the hydrocarbon sector, during the joint press conference with President of Cyprus, Mr Demetris Christofias.
Mr. Netanyahu emphasized the need of cooperation, stating that this can be very helpful in the future because, as he pointed out, the research and the cooperation on multiple sectors at once is much more useful and efficient than working and investigating one sector at a time. He also pointed out that the outlook of this cooperation can positively affect the welfare of Cyprus and of the wider region as well.
In addition, Mr. Netanyahu noted that despite the fact that the flight from Israel to Cyprus takes only 45 minutes, “it took 63 years for an Israeli Prime talked about the strong bonds and Minister to visit the island.” He also talked about the strong bonds and relationship between the people of the two countries and how this relationship has developed during the last few years. He emphasized the need and importance of continuing and extending this cooperation in other areas as well as the energy sector.
Mr. Netanyahu thanked President Demetris Christofias for the hospitality and he expressed the hope that he will be able to fill in, in the future the gap of the 63 years which took for an Israeli Prime Minister to visit Cyprus.
On the other hand, President Demetris Christofias said that both Cyprus and Israel will work effectively aiming to use the hydrocarbon reserves which have been officially confirmed within the Exclusive Economic Zones of the two countries, aiming at the welfare of both the people of Cyprus and Israel.
The President of Cyprus noted that “contacts are already in progress in order to discuss the perspective plans” which he wished to “lead in the near future to concrete suggestions for promoting the bilateral agreements between the two countries.”
Referring to the first visit of an Israeli Prime Minister in Cyprus, President Christofias said that such a visit confirms the strong and high-level relationship between the two countries.
In relation to the signing of a bilateral agreement regarding the sectors of research and rescue services, President Christofias said that it is a tangible confirmation of the increased level of cooperation and development of this cooperation level with Israel.
Cyprus Company Formation Multilysis Services Limited
Cyprus Lawyers N. Pirilides & Associates LLC
Cyprus – Russian Business & Investment Forum 2012
Multilysis’ staff had the chance to attend the Forum which was held on the 10th of February 2012 at Four Seasons Hotel in Limassol.
The conference was organized successfully by the Cyprus Chamber of Commerce and Industry, the Chamber of Commerce and Industry of the Russian Federation, the Cyprus-Russian Business Association and the Business Council for Cooperation with Cyprus.
Addressing the Russia-Cyprus Business and Investment Forum, in Limassol yesterday, the Russian Ambassador said that in the last 20 years, ‘the gross investment volume between our countries reached one hundred billion dollars and this is a very impressive figure’, adding, ‘Trade and economic volume cooperation for the last year reached about $1.3 billion’.
Mr. Shumskiy said that ‘In trade and economic cooperation, we have reached the pre-crisis level…..We have managed within a short period of time to overcome economic and financial difficulties and we have good potentials’.
Also speaking at the Forum, President Demetris Christofias said that Cyprus was a “safe and reliable partner” for Russian businesses looking to implement their international strategic plans “in a period of political instability and uncertainty” for the region.
He noted that foreign direct investment into Cyprus from Russia has exponentially increased in recent years, showing that Cyprus is an international business hub for Russian business people. Mr. Christofias emphasized how Russia’s economy has traditionally played a significant role on the island, ‘acting as a catalyst of growth for the Cyprus economy’.
He thanked Russian President Dmitry Medvedev for his personal contribution to making the two countries’ sustain the very strong and historical ties, mutually beneficial in political, economic and business relations.
Mr. Christofias highlighted that the Forum provided an “excellent opportunity” to strengthen relations with Russia, making specific reference to potential investment in the energy sector, following from the recent gas finds in Cyprus’ exclusive economic zone (EEZ).
‘Naturally, we are expecting that Russian companies focusing on energy, today, will show interest in examining the investment opportunities now present in this sector in Cyprus,” said Mr. Christofias.
Vice-president of the Russian Chamber of Commerce and Industry, Mr. Georgy Petrov said that 2011 was the year of economic revival for Russia, with GDP growth of 4.5%, adding that 2012 will be ‘even more successful’. Mr. Petrov called for the ratification, by Duma, of the Double Taxation protocol, signed between Christofias and Medvedev during the latter’s visit to Cyprus in 2011.
At the conference, it was stressed by various speakers that one of the main goals of the Cyprus Government is to maintain its advantages and further improve the competitiveness of the economy. In this respect, the ongoing measures include, among others:
· simplification of the regulatory framework and the reduction of the administrative burden for business;
· continuous upgrading of the infrastructure in transport, energy and communications;
· promotion of research and innovation; and
· the further development of human capital.
Furthermore, all of the speakers highlighted the fact that Cyprus’ economy has proven its capability of successfully confronting challenges and that Cyprus offers considerable comparative advantages to foreign investors who are seeking a place to conduct business and that the Cyprus – Russia Business Association can and will play a vital role.
Cyprus Lawyers N. Pirilides & Associates LLC
Cyprus Company Formation Multilysis Services Limited