Sanctions put services sector on high alert
The government, law firms, and accounting offices are set on high alert as the sanctions list story not only affects Cyprus but also leads to the services sector’s degradation. At the moment, the sector is already facing the consequences of the first round of sanctions imposed by the USA and UK, while it awaits the second one that will be announced next Friday.
The government is called upon to promptly manage the recent developments on the matter, which has raised serious concerns about a greater-than-expected impact on the economy, the Director-General of the Ministry of Finance, George Pantelis, stated.
Moreover, in his statement, the Director-General emphasized that the government should handle the issue politically, as the services sector has been severely affected by the sanctions imposed by the US and UK.
Similarly, the President of the Cyprus Bar Association, Christos Clerides, also urged the government to take immediate action. In his statement to Brief, he highlighted that the services sector is under attack and warned that the possibility of its complete destruction is becoming evident.
The Department of Registrar of Companies and Intellectual Property is assessing a large number of requests from companies that are directly or indirectly involved with the sanctions imposed by the US and UK. Currently, the Department is waiting for the government's instructions to handle the matter.
Registrar of Companies and Intellectual Property, Irene Mylona-Chrysostomou, told CNA (Cyprus News Agency) that there are currently around 500 requests; the Registrar added that the Department also receives numerous telephone calls daily. She mentioned that many lawyers and accountants, who are interested in taking on and assisting these companies, are waiting for the final decision on how to handle the applications. Afterwards, they’ll be able to submit requests.
In addition, she noted that the Department of Registrar of Companies has not taken any action since April 12 when sanctions were announced. “We are examining the matter and awaiting guidance by the government on the policy terms of US and UK sanctions,” she explained.
Furthermore, Irene Mylona-Chrysostomou stated that the Attorney General’s view on the issue was requested, specifying that it has already been submitted and is currently being studied by the Department.
It is noted that in April, the US and UK imposed sanctions on individuals and legal entities in Cyprus for facilitating Russian oligarchs’ financial activities. The government requested more information from the American authorities regarding the imposed sanctions. Last Friday, a new dossier was received from Cyprus’ government in relation to the legal basis that led the US government to proceed with imposing sanctions, while a third dossier is expected soon.
The US and UK authorities are expected to announce a second list of individuals and legal entities in Cyprus who will be subject to sanctions, on Friday.
