Russia is amongst the largest foreign investors in Cyprus, Minister of Commerce, Industry and Tourism Antonis Paschalides has said.
Addressing Tuesday the Moscow Business Forum, in Russia, the Minister said that the value of Russian investments in Cyprus reached €2 billion in 2008, whereas the value of Cypriot investments in Russia during the same year was more than €1.5 billion.
These investments, he went on to add, are mainly in real estate and business activities, trade and repairs, financial intermediation, and manufacturing.
Referring to trade, he said that exports of Cyprus products to Russia during the period 2005-2008 represented an increase of 55%, despite the small decline in 2009 which is due to the recent economic crisis.
''Total imports from Russia are nearly double our exports'', he added.
As regards tourism, Paschalides said that in 2009 150.000 Russians visited Cyprus, while in the same year 49.000 Cypriots visited Russia.
''It is worth mentioning that a large number of Russians do not only visit Cyprus as tourists, but also use our island as a pleasant place to reside and be actively involved in various businesses'', he pointed out.
Paschalides said that Russian companies can benefit from the numerous tax advantages and other incentives to establish in Cyprus assembling or manufacturing operations for the supply of existing and newly emerging markets in the region.
The Minister noted that Cyprus has a favourable environment for all types of business, a stable economic environment, which offers confidence, safety and security, a modern and transparent legal framework, a liberal foreign investment policy, low company set-up and operating costs, simple administrative procedures, a wide network of agreements for the avoidance of double taxation and a low corporation tax at 10%, the lowest in the EU.
Referring to Cyprus' economy, he said that despite the global financial and economic crisis, Cyprus’ economy experienced a higher than the EU average growth rate in the last years, inflation is currently low and unemployment in 2010 is expected to be at a low 6.8%.
Average per capita income, in terms of purchasing power, corresponds to almost 95% of the EU average, he added.
He described services activities as the most dynamic and growing sector, which has surged since the mid-1990s, and now accounts for about 80% of the country’s Gross Domestic Product.
''The professional and business service sector has much to offer to Russian business people, a comprehensive range of services from accounting and banking to legal services, IT, business consulting, design, engineering, shipping and marketing, health care and education'', he pointed out.
The Minister said that the credibility Cyprus has earned among the international investment community is evident from its foreign direct investment track record.
Concluding he said that the value of Foreign Direct Investments in 2008 was €15.2 billion, continuing an upward trend.
