Communications and Works Minister Erato Kozakou Marcoullis has said that losses in Cyprus’ economy as a result of Turkey’s air and sea embargo against Cypriot flagged vessels amount to 138,5 million euro, accounting for 1,3 % of the GDP (Gross Domestic Product).
Addressing an international conference on transport, in Larnaca, Marcoullis said that the Turkish embargo has also many negative financial repercussions for the EU and its member states.
She noted that Turkey has imposed restrictions on 2800 vessels, owned by Cypriot or other EU companies which are registered in Cyprus, preventing them from docking at Turkish ports, and that has a huge cost for European interests.
She said that the Republic of Cyprus has focused its efforts on terminating these restrictions.
With regard to air transport, she said that Turkey creates problems to Cypriot air carriers by illegally restricting over-flights over its territory.
The Minister stressed that this unacceptable Turkish policy violates the International Air Services Transit Agreement and the Chicago Convention of 1944, something that creates technical and huge financial problems for the Cypriot air carriers, since it makes them less attractive for certain destinations.
Turkey, whose troops occupy Cyprus’ northern areas since they invaded in 1974, does not recognise the Republic of Cyprus, an EU member. In April 1987 it imposed restrictions on Cypriot flagged vessels and in May 1997 Ankara issued new orders to extend the restrictions to include ships under a foreign flag which had any relation with the Republic of Cyprus
The shipping industry records annual losses amounting to 100 m. euro.
It is noted that 16% of the EU registered ships cannot dock at Turkish ports.
The Cyprus shipping register represents nearly 12% of the European registry and one quarter of the world’s ship management is represented by Cyprus.
Several official EU documents outline Turkey’s legal obligation to lift its embargo on Cypriot and EU shipping but so far Ankara has refused to meet its EU commitments.
The Cyprus ship registry today ranks tenth among international fleets and third in the EU. Cyprus is also a major ship management centre worldwide, with approximately 60 ship management companies operating on the island.
