Sanctions should be a spur to modernize.

AAS Business has published an interview with Partner, Nikolas Tsardellis. The interview concerns the impact on Cyprus and its professional services sector of the current war in Ukraine and, the imposition of sanctions on some Russian individuals and businesses.

Nikolas dismissed the notion that Cyprus and its professional services sector is overexposed to the sanctions although he conceded that adverse economic consequences for non-Russian businesses which customarily trade with the sanctioned entities are unfortunately inevitable. The impact of the sanctions is, however, global and Cyprus is less exposed than many other countries. He commented that in fact a principal concern for the professional sector is ensuring compliance not just with EU sanctions but with the several different sets of sanctions that have been put in place from other countries such as the USA, the UK and Canada.  The situation is complex.

He noted that the professional sector has always proved to be adaptable and resilient and that it has been instrumental in attracting investment from Europe, Asia and the Americas going on to highlight the rise of Cyprus as a headquartering and technology hub.  Nikolas believes that the current conflict provides a spur for the creation of a new economic model and tax regime for Cyprus.  He emphasized that a rapid modernization of both government and professional services  is essential for building sustainable prosperity.  He also acknowledged the benefits that many Ukrainians and Russians who reside permanently in Cyprus have brought to the country and noted that in the longer term the prospect of some Ukrainian and Russian businesses choosing to locate in Cyprus is a reality. The worldwide long term economic impact of the war cannot be predicted but by moving quickly to modernize and thereby improving its own product Cyprus can influence its own future for the better as an international business centre.

The full interview (Greek Language) may be viewed here.

For more information, please speak with Nikolas Tsardellis.