“I welcome the recent agreement between the state authorities of Cyprus and Russia to postpone the implementation of the Protocol amending Article 13 of the Double Tax Treaty, with respect to taxes on income and on capital, until the introduction of simil

Today, following successive upgrades by rating agencies, the sovereign rating of the Cyprus economy is just one notch below investment grade, which confirms in the best possible way that we are on the right path towards full reestablishment of confidence towards Cyprus in the international investor community. Allow me to recall, at this point, that the economy of Cyprus was 12 notches below investment grade at the peak of the crisis.

At the same time, I am confident … of the prospects of new sectors where Cyprus is set to play an important role, including the development of the Funds Industry.

From my side, what I feel I should emphasise is the strong commitment of my Government to continue working so that Cyprus remains firmly on a path of sustainable growth. We recognise the importance of maintaining sound public finances. We are committed to maintain a stable and competitive tax regime. We shall continue to invest in our human capital, supporting higher education and research. And we shall continue to stand by the local and foreign business community, always striving to create a business friendly economic environment.

We know that it is through the joint efforts of government and industry that we shall succeed in making Cyprus a topnotch destination for business and investment. This is how we shall continue creating jobs, opportunities and prosperity for our people. And this is exactly the ambition and commitment of our government. Our desire and wish is to encourage and support investment and commercial exchange in both directions, taking into account the fact that Cyprus, despite its small size, is a major centre of international business, but also a base from which inroads into regional markets can be achieved.

The unique combination of EU membership, the AngloSaxon legal framework, the beneficial tax regime and the highly-skilled workforce, all contribute to Cyprus’ establishment as an attractive investment destination, offering significant opportunities and easy access not only to European markets, but also to those of North Africa, the Near and Middle East, the Gulf region and Asia.

In this respect, a bilateral Cyprus – Russian Federation dialogue is in progress, in order to address a range of issues of economic issues, based on the established joint Intergovernmental Committee on Economic Cooperation, whose last meeting took place in April, in the presence of the Cypriot Minister of Finance. At the said meeting, both sides welcomed the rise of tourism, the liberalisation of air transport, as well as investment initiatives in agriculture and telecommunications.

At the same time, I welcome the recent agreement between the state authorities of Cyprus and Russia to postpone the implementation of the Protocol amending Article 13 of the Double Tax Treaty, with respect to taxes on income and on capital, until the introduction of similar provisions in the bilateral Double Tax Treaties of Russia with other European countries.

Further, being fully aware of the strict regulatory framework of the Russian Federation and the need for transparency and accountability in all investment and business transactions, I am obliged to stress that Cyprus is fully harmonised with European taxation regulations and to the Organisation for Economic Cooperation and Development (OECD) policy standards on fiscal transparency and exchange of information on taxation matters.

This is also reflected by the Protocol to the Russia – Cyprus Double Tax Treaty, which entered into force in 2013, and the relevant Article relating to the exchange of information, which was revised in line with article 26 of the OECD Model Tax Convention on Income and Capital.

The business community of the Russian Federation can rest assured that Cyprus will remain a reliable partner and will retain its position as a significant international hub for Russian and Cypriot business and investment.