The affect on the Cypriot economic system from the EU sanctions in opposition to the Russia after its invasion of Ukraine will primarily stem from tourism and power, George Panteli, the Finance Ministry’s Everlasting Secretary has mentioned.
In keeping with a press launch issued by the Finance Ministry, Panteli represented Cyprus within the EU Finance Ministers assembly that wrapped up on Tuesday in Brussels.
EU Finance Ministers mentioned the monetary and financial repercussions of the sanctions the EU has imposed on the Russian Federation.
Talking on the assembly, Panteli expressed Cyprus’ unwavering solidarity with Ukraine and the Ukrainian folks.
With regard to the sanctions imposed in opposition to Russia, the Finance Ministry official referred to the broader affect on the EU economic system and famous that Cyprus will face challenges primarily stemming from the sectors of tourism and power.
Russia is taken into account Cyprus’ second tourism market, whereas the lack of tourism arrivals each from Ukraine and Russia in 2022 is estimated at 800,000. Moreover, power costs will have an effect on inflation in Cyprus, because the island is sort of wholly depending on oil for electrical energy era. The Finance Ministry has revised its projection regarding inflation in 2022 to 4% from its earlier estimate of 1.5%.
Moreover, the EU Finance Ministers reached an settlement on the EU Carbon border adjustment mechanism on the premise of the proposal by the European Fee and had an orientation dialogue on the transposition to EU legislation of the OECB world settlement on a 15% tax fee to giant multinational firms.
ON March 14, Panteli additionally attended the Euro space Finance Ministers’ assembly (Eurogroup) which mentioned the monetary state of affairs and the coordination of fiscal coverage within the Euro space within the gentle of the struggle in Ukraine, in addition to the Banking Union and the improved surveillance report on Greece.
(CNA)