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Russian Political Party - A dangerous move?
24 September 2017
This is not a political article, but we lay down our own thoughts on the above subject and its possible side effects that this may have for Cyprus, its economy its effect on its short “success” story and the Cyprus real estate.
Regrettably foreign press and Governments do not observe such developments (Russian party etc) with a positive eye. The second world war is still with us, we are afraid, and a number of European countries such as Germany, the Baltic states, Poland etc will not look upon this with a positive eye.
The Bail In for Cyprus in 2013, is a case in hand. E.U. Banks in worse situation than Cyprus, were not forced to have a bail in and only Cyprus has had to adopt this (under E.U. pressure). The reasons? The target was the Russian money deposits and not the locals.
Let’s look how others see us.
These sorts of developments are, for Cyprus, good and welcomed, but are not looked upon by others with the same attraction as we do. Our long standing friendship with Russia and other eastern block countries are looked upon with suspicion emanating from the Makarios era (at the time it was reported that Cyprus - Makarios, was turning this island into a new Cuba)
Having said that and with the creation of this new party to be, this will not be acceptable by the E.U. and of course by the U.S.A.
It is expected that there will be a reaction and it would have been better for this emerging party to become more of a pressure group than otherwise, which can be affiliated with one of the existing parties, so that it will entertain the above concerns.
Because this article is a real estate one, we will expect an increased pressure on the Government by the E.U. regarding the passports measure, whereas not other E.U. members have had the same response and this might lead to the introduction of some sort of sanctions/restrictions.
The above might happen - (why not, since the Bail in was never used in other countries, the only negative press report regarding the passports referred to Cyprus, notwithstanding that Cyprus has a minute percentage for this in relation to the E.U. and nowhere other countries are referred to).
This will, by projection and if this happens, the interest for our high end real estate projects for which we as Cyprus have invested a lot, will discourage Russians/others doing businesses in Cyprus will set an example for others to “keep away”. Even president Putin has stated that Cyprus is an example to be avoided encouraging Russians to keep their money in their own country.
Regrettably being a small and weak country we cannot respond and we follow the sanctions that the E.U. imposed for Russia (much to the delight of Turkey regarding at least agricultural products) and whatever other measures will be in the future. We must take advantage of the new business regarding the tourist industry, the hotels and real estate investment and if we were to adopt that approximately 30% of the foreign buyers/investors are of Russian origin, this is a large percentage worthy to keep a close eye on this situation.
Notwithstanding the above it will be a mistake to consider in our own little island that we are okay with this and it is with a great embarrassment that we may be one of the first to raise our concerns hoping for some sort of an alternative to be found.