RUSSIAN President Dmitry Medvedev’s visit his week will be the most important visit to Cyprus of any head of state in terms of sheer economic impact, business leaders said yesterday.
Medvedev is due on the island tomorrow on a two-day visit, during which it is possible that the two governments will be putting their signatures on a treaty for the avoidance of double taxation.
Russia is among the largest foreign investors in Cyprus, with an investment volume of €2 billion in 2008, according to official figures. In 2008, $34 billion were invested in Russia via Cyprus, while Cypriot investment in the country was €1.5 billion.
“There is no longer any doubt that the Russian Federation is Cyprus’ single most important economic partner,” said Manthos Mavrommatis, chairman of the Cyprus Chamber of Commerce and Industry (KEVE).
Mavrommatis was speaking at a news conference, organised by KEVE, giving the heads-up on a Cyprus-Russia Business Forum to be held in Nicosia on Thursday.
The forum is being co-organised by KEVE and the Russian Chamber of Commerce, the Cyprus-Russia Business Association and the Cyprus-Russia Friendship Association. The venue is Nicosia’s Hilton Hotel. The event, which starts at 9am, will host some 300 businessmen from Cyprus and 160 from Russia. Both President Demetris Christofias and Medvedev will attend
According to Mavrommatis, the forum would cover all areas of economic cooperation, including financial services, investments, land development, shipping, commerce and industry.
Calling the forum “one of the highlight events of the year,” Mavrommatis said it would give Cypriot and Russian entrepreneurs the opportunity to develop relations on a personal level.
Of Medvedev’s visit in general, Mavrommatis said: “It is particularly important, and it would be a great achievement if, as it is expected, an agreement for the avoidance of double taxation were signed, as it would give a new boost to economic ties between the two countries.”
Andreas Eliades, CEO of Bank of Cyprus Group, one of the forum’s co-sponsors, announced that the bank would fund the accommodation in Cyprus of some 100 Russian families that have suffered from the devastating fires that raged in the country this summer.
“We know that this cannot solve these families’ financial problems, but it is a gesture of care which we feel can help ease the pain and give hope,” Eliades said.
For his part, Christos Stylianides deputy CEO of Marfin Popular Bank, said he was confident the forum would strengthen the ‘historic and cultural ties’ between the two nations.
Stylianides noted that Marfin was the first bank from Cyprus or Greece to develop a network of branches in Russia after acquiring a majority stake in Rosprombank.
