Today, May 23, the Parliamentary Commerce Committee is convening to bring together stakeholders, entrepreneurs, lawyers, and accountants to discuss the economic ramifications of the sanctions imposed by the US, UK, and also the EU since the start of the war in Ukraine.  

In his interview with Brief, Kyriakos Hadjiyiannis, the President of the Parliamentary Commerce Committee, emphasized the need for the government to assess the impact of these sanctions and develop effective strategies to mitigate their effects.

Mr. Hadjiyiannis highlighted the importance of Cyprus following the lead of other European countries that both impose sanctions and provide support to the affected sectors, the ones bearing the brunt of these measures.

"We will revisit the discussion today since EU member states have responded positively by offering various forms of support to these businesses. However, we have yet to witness a similar response in Cyprus," noted Mr. Hadjiyiannis. He further expressed concern that certain companies are facing severe challenges at the moment, potentially leading them towards bankruptcy.

The initial wave of sanctions has already taken a toll on numerous businesses, with some struggling to overcome their dependence on the Ukrainian and Russian markets.

Subsequent rounds of sanctions have further restricted business operations, resulting in the closure of offices, including those providing accounting and other professional services. "These businesses are experiencing sustainability issues, and it is crucial for the government to proactively manage their situation to prevent bankruptcies," Mr. Hadjiyiannis said.

It is important to note that both the Ministry of Finance and representatives of lawyers and accountants have recently expressed their concerns regarding the services sector in Cyprus. They stress that specific decisions must be taken by the government to avert the sector's potential downfall.

The Department of Registrar of Companies is currently engaged in the process of untangling companies that have been affected by the sanctions imposed by the US and UK. This statement was made by the Companies Registrar to the Cyprus News Agency, emphasizing the Department's proactive approach in addressing the situation. Additionally, “the Department is actively examining the updated sanctions list issued by both countries, aiming to establish a consistent framework for dealing with affected companies”, Irene Mylona-Chrysostomou said.

Furthermore, she elaborated on the Department's prompt actions following the instructions provided by the Ministry of Finance last Thursday. Without delay, a specialized team, comprising a senior examiner in document matters and several skilled personnel, was assembled to efficiently process the substantial number of approximately 600 applications that had been received.

"We have already gathered and meticulously reviewed around 300 applications, out of which 100 have already been successfully addressed, while the remaining cases are currently in the process of being resolved," stated Ms. Mylona-Chrysostomou, emphasizing the Department's commitment to prompt and effective resolution.