Medvedev in Cyprus: Double taxation agreement to boost Russia investments

Minister of Finance Charilaos Stavrakis said today that investment from Cyprus to Russia will mark an increase, after the signing of an agreement to avoid double taxation between the two countries.

The Minister described the agreement as “very important” and “very beneficial for the two countries”.

Speaking at the Cyprus-Russia Business Forum held today in Nicosia, Stavrakis mentioned that Cyprus comprises one of the biggest foreign investors in Russia. He also referred to the financial benefits of Cyprus as a financial hub and spoke about the potential of Cypriot economy.

According to the Minister, growth rates at the end of 2010 will stand at 0,5 – 1%, while inflation will remain low, at 2,5-3%. Moreover, unemployment rates will not exceed 6,5%.

Stavrakis added that, according to his expectations, the economy will grow by 1,5% within 2011, while the International Monetary Fund predicts a 1,8% growth.

President of the Cyprus Investment Promotion Agency Phidias Pilides, addressing the Forum said that the agreement between Cyprus and Russia to avoid double taxation will give a new impetus in the financial cooperation between the two countries and is expected to increase flow of investment.

Pilides added that Cyprus’ taxation policy is considered as the most advantageous among EU countries, for those businesses establishing their parent companies, or investing, financial, shipping or copyright companies in the island.

Cyprus has been put in the white list of OECD and the G20 on April 2009, CIPA President added, saying that this fact confirms Cyprus’ reputation as a respectable international business center.