The new sanctions imposed by the United States may have only affected four companies in Cyprus -bringing the total number to 38-, however the possibility of a new sanctions round against Cypriot entities and individuals cannot be ruled out, a concept that negatively affects the already tense atmosphere in the economy. 

It is worth noting that three days ago, the United Kingdom proceeded with a new list of sanctions, but it did not include new natural or legal persons from Cyprus. Nevertheless, as Brief reports, some of these companies have economic ties with the country.

Furthermore, sources in the services sector indicate that there will be a third incoming package of sanctions. However, this has not been confirmed so far, at least not by official sources.

Moreover, the same sources emphasize that "the damage has already been done" in the services sector, as well as the national economy. Apart from the layoffs and companies' payment suspensions, foreign entrepreneurs appear to have withdrawn their interest in potential investments in Cyprus.

Although the recent data has worsened compared to the initial estimates regarding the overall impact on the economy and the blow to the services sector, the government has not yet addressed the issue politically.

It should be noted that, the only political decision taken since April 12, when the first sanctions package was announced, was the instructions given to the Registrar of Companies (following the Attorney General's view on the matter), concerning the disentanglement of a number of companies that have become dormant. More than 500 companies have submitted requests for changes in their administrative structure, and these requests are currently increasing.

At the same time, significant decisions were made at the G7 Summit, which took place in Japan, regarding Ukraine and Russia. The G7 joint statement on the issue states that Russia will be held responsible for the damages caused in Ukraine and should pay for the country's reconstruction. Moreover, the same statement notes that all assets of the entities listed in the Sanctions Lists may be seized to cover part of the cost for Ukraine's reconstruction.

Following the above additions to the US sanctions list, which include four additional Cypriot companies, the number of individuals and entities in Cyprus subjected to sanctions by the US and UK has risen to 38. The four recently added companies were: AQUILA CAPITAL GROUP, HURIYA PRIVATE CYPRUS LTD, HURIYA PRIVATE FZE LLE and ROBARIN LTD.

On April 12, as previously reported by the Brief, after the UK Foreign Office issued a list of sanctions which included two Cypriots, the US Department of the Treasury followed suit and issued its own list of sanctions on the same day, targeting several individuals and companies. Among them, there were multiple natural and legal persons based in Cyprus.

Specifically, the US and UK sanctions on April 12 affected 16 natural and 18 legal persons in the country. These 34 individuals and entities are now joined by the 4 companies that were added to the US list on May 19. 

The government, along with law firms and accounting offices, is on high alert as the impact of the sanctions list extends beyond Cyprus, causing significant degradation in the services sector. George Pantelis, the Director-General of the Ministry of Finance, stressed the need for prompt management of the situation, expressing worries about the economy. The President of the Cyprus Bar Association, Christos Clerides, echoed these concerns, urging immediate government action to prevent the potential complete destruction of the services sector.