USA and Russia have an opposite perception on many international issues but one thing the two superpowers seem to share is the view that Cyprus is a real attractive investment destination, according to analysts.
They seem totally convinced that Cyprus provides fertile investment ground for both Russian and American companies. And that the relation between the three players is not one-dimensional but one which is beneficial to all.
That is why business leaders from both countries have embarked on a hunt for opportunities to further boost business relations in Cyprus over the recent years.
Traditionally, Russian investments were the backbone of foreign investment in Cyprus. However, the tragic events of 2013 have jeopardized the confidence of Russian entrepreneurs in the Cypriot economy and the proof is in the data of the Central Bank of Cyprus.
This shows the overall deposits of Russian nationals by end of 2012 amounting to €21.5 billion compared to €6.78 billion by end of June 2019. However, as President of the Cyprus-Russian Business Association Evgenios Evgeniou said in the latest issue of Insider magazine, Cyprus continues to be a favourite destination for many Russian businesspeople.
“Cyprus continues to be an important business centre for Russia, with many entrepreneurs maintaining the headquarters of their multinational companies here, and, thus, contributing significantly to the country’s growth,” Evgeniou also said.
At the same time, US investments in Cyprus over the recent years have been expanding especially in the areas of tourism, banking and education. Specifically, US-based Invel funds secured a strong participation in Aphrodite Hills Resort’s shareholding structure. And NCH Capital took over the well-known Beau Rivage Hotel in Limassol.
Meanwhile, the island’s banking sector saw US institutional investors under Wilbur Ross putting approximately €400 million in the Bank of Cyprus in 2014, while US-based Third Point Fund has invested €40 million in Hellenic Bank. In addition, Apollo investment fund has reached agreement to acquire a Bank of Cyprus portfolio of non-performing loans and mortgaged assets worth €2.8 billion.
“Cyprus’ strong and credible legal and regulatory framework makes it a serious investment option for US loan and asset management fund managers,” Haris Kakoullis who heads the Chamber of Commerce in Cyprus (AmCham Cyprus) told Insider magazine.