VTTI expresses its confidence in Cyprus

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VTTI B.V., one of the world's fastest-growing independent energy storage companies, reaffirmed its support and commitment to Cyprus where its subsidiary, VTT Vasiliko Ltd, is developing a major oil storage terminal.

Commenting on the recent economic turmoil in Cyprus, Rob Nijst, CEO of VTTI, drew a positive picture of the prospects of the country as an energy hub and announced even bigger investments: “Our commitment and confidence in Cyprus remains as strong as ever. The project is proceeding according to plan and almost 12 tanks are now completed. In total we expect to invest around €300 million, generating employment during the project and also after its completion. We see Cyprus as a future energy hub of the Eastern Mediterranean, and an attractive place in which to invest. In fact, we are already exploring the possibility of expanding the scope of the project to include marine bunkers”.

Mr. George Papanastasiou, Managing Director of VTT Vasiliko Ltd, stressed the importance of the project for the fragile economy of Cyprus, noting that this investment will bring significant economic benefits in the midst of a severe economic downturn: “The Terminal will make Cyprus a hub for storing and trading oil products, and will yield substantial financial benefits for the island. It will contribute with capital injections to the Cypriot economy and it will have multiple positive effects to the wider society; from jobs created to the reduction of fuel costs due to the increased competition. The Cyprus Ports Authority will benefit with approximately €18 million per year from port duties, while the State will have additional revenues from customs duties and the taxation of companies that will market their products through the Terminal”.

Mr. Papanastasiou added that Cyprus can remain an attractive business centre: “Cyprus has many advantages for attracting investments; it has a favorable geographical location, it is a member of the EU, it offers very good level of services and infrastructure, and a highly qualified English-speaking workforce. I am confident that our project at Vasilikos will strengthen international confidence in Cyprus for foreign investments and business activities at a time when our country is in urgent need to revitalize the economy”.

VTT Vasiliko Ltd is a company registered in Cyprus, a subsidiary of VTTI B.V. VTTI is a joint venture of two companies, with investments in oil storage terminals in 14 countries with total capacity of 8.6 million m³. VTTI’s shareholders are the Dutch energy giant Vitol, the largest energy trading company in the world, and MISC, a leading international shipping company, owned by the Malaysian state oil company Petronas.