Sapienta Cyprus Selection, 8 Dec 2022
Regular Cyprus-relevant links
A regular selection of links to articles of medium- to long-term relevance to people living and doing business in Cyprus. Topics marked with * will be, or already have been, analyzed in our monthly issues of monthly issues of Sapienta Country Analysis Cyprus.
Energy & Egypt. Egypt's natural gas consumption - mainly used for electricity - will soon exceed its supply. Even more electricity demand is coming as it plans to build 21 (energy-gobbling) desalination plants. Article from Reuters: https://www.reuters.com/markets/commodities/egypt-build-21-desalination-plants-phase-1-scheme-sovereign-fund-2022-12-01/.
Russian sanctions. I have argued that Russian sanctions are good for Cyprus, as it forces the business services sector to diversify. Indeed, I understand the smart ones have already massively reduced Russian exposure. This week the EU further tightened sanctions on Russian individuals and banks. Article from the European Commission: https://ec.europa.eu/commission/presscorner/detail/en/STATEMENT_22_7568.
New anti-money laundering rules (AMLD6). "Hiding behind multiple layers of ownership of companies won’t work any more" under new anti-money laundering and combating the financing of terrorism (AML/CFT) rules that will be coming into force. Article from the European Commission: https://www.consilium.europa.eu/en/press/press-releases/2022/12/07/anti-money-laundering-council-agrees-its-position-on-a-strengthened-rulebook/.
Direct flights to northern Cyprus*. Reports that Russia would agree to send direct flights to northern Cyprus i.e. without touching down first in Turkey as all other flights must do, have so far proven unfounded. But the pressure continues. Report from Anadolu Agency: https://www.aa.com.tr/en/europe/russian-residents-of-northern-cyprus-push-for-direct-flights/2758531.
Unaccompanied minors. A new deputy ministry of social welfare was established in July 2021. One of the key challenges of the deputy minister, Anastasia Anthousi, is dealing with unaccompanied children who find their way to Cyprus. Interview with Kathimerini: https://knews.kathimerini.com.cy/en/news/unaccompanied-minors-are-on-the-rise.