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Showing posts with label Cyprus. Show all posts
Showing posts with label Cyprus. Show all posts

2/28/20

EU blacklists two Turkish nationals over illegal gas exploration offshore Cyprus

The European Union on Thursday blacklisted two Turkish nationals as retaliation over Ankara’s oil and natural-gas exploration in waters that are part of the exclusive economic zone of member country Cyprus.

The EU asset freezes and travel bans on the two people, whom the bloc plans to identify later on Thursday, Bloomberg reports.

The sanctions are the first of their kind in response to the actions of a nation seeking to join the EU.

However, the decision by EU governments in Brussels stops short of targeting any Turkish companies.

This reflects a desire to avoid antagonising a key ally in the fight to prevent Middle East migration, particularly from war-torn Syria.

Relations between the EU and Turkey have been deteriorating since Turkish President Recep Tayyip Erdogan responded to a failed coup attempt in mid-2016 by unleashing a widespread crackdown on political opponents.

Ties soured further in 2018 when the Turkish navy prevented drilling by Italy-based Eni SpA in Cypriot waters.

And again late last year, when Turkey carried out a military operation in northern Syria to carve out a buffer zone and struck a controversial accord with Libya on their maritime boundary.

The energy-exploration tensions are a reminder of the most basic European disagreement with Turkey: its occupation of the northern part of Cyprus since a 1974 invasion.

Read more at: EU blacklists two Turkish nationals over illegal gas exploration offshore Cyprus – In-Cyprus.com

2/19/20

Middle East: Russia, Turkey, Iran reassert glory of past empires in today's Middle East - by Jack Cohen

Three countries – Russia, Turkey and Iran – are currently trying to reassert their former influence and glory, harking back to the power and greatness of the former Czarist/Soviet, Ottoman and Persian empires, respectively. In many ways these three imperial states, led by autocratic leaders – President Vladimir Putin, President Recep Erdogan, and Ayatollah Khamenei, respectively – are similar and have found it convenient to collaborate in some matters. But, in most ways these leaders and their putative empires are very competitive.

The difference between these three intended empires and the USA is very stark. While the US is really the only superpower, President Donald Trump has enunciated a policy of withdrawal from the Middle East, the main area of big power conflicts, even though his mantra is “Make America Great Again.” In this policy he continues that of his predecessor, Barack Obama, who also had a policy of retraction from the Middle East. By contrast, Russia, Turkey and Iran are all in an expansionist phase, particularly in that region.

The difference between these three intended empires and the USA is very stark. While the US is really the only superpower, President Donald Trump has enunciated a policy of withdrawal from the Middle East, the main area of big power conflicts, even though his mantra is “Make America Great Again.” In this policy he continues that of his predecessor, Barack Obama, who also had a policy of retraction from the Middle East. By contrast, Russia, Turkey and Iran are all in an expansionist phase, particularly in that region.

They see the Arab countries as weak and exploitable, and two of them, Iran and Turkey, seek to reassert their former spheres of control there. Russia, it is said, has always sought a warm water port in the Mediterranean Sea, and in fact Obama’s incompetence gifted that to Putin.

When he declared his red line over the Syrian regime’s use of chemical weapons, and then instead allowed Putin to come into Syria to mediate the removal of those weapons from Assad, he released a monster. Putin got his port at Latakia and then an airfield, and then participated in the fighting with Assad’s regime and saved it from the brink of defeat and brought it to victory, at the cost of millions of lives.

Syria is now effectively a vassal state of Russia, and Putin will decide its fate.Iran has also been active in Syria, through its Quds Force of the Iranian Islamic Revolutionary Guards Corps (IRGC), whose former leader, Gen. Qasem Soleimani, was assassinated by the US.

There is a relationship between Assad, who comes from the Alawite minority in Syria, and the Shia from Iran. But we should see that as an ideological excuse to justify Iranian expansionism into the Arab world. Although they would be loath to admit it, Shi’ism is a cloak for the reassertion of Iranian power in the region formerly part of the Persian Empire. Its influence now extends to Yemen, where Iran supports the Houthi rebels; Iraq, where it controls the Popular Mobilization Forces; and Lebanon, where Hezbollah is its dependent proxy.

Turkey under Erdogan has been veering away from the democratic Westernized Turkey that Kemal Ataturk foresaw, toward a Sunni religious format. In doing so, he has taken on the dubious role of reconstituting the Ottoman Empire. He has entered the Syrian morass, defeated the Kurdish forces and occupied a 30-kilometer stretch of Syrian territory where he claims he intends to settle some of the millions of Syrian evacuees in his country.

He controls northern Cyprus, and his latest move is into Libya, where he has agreed to support the supposedly legitimate government in Benghazi in exchange for oil exploitation rights in the Mediterranean. Meanwhile Russia is supporting the insurgent army of Gen. Khalifa Haftar, who controls Tripoli and much of Libya.

The reduction of American presence and power in the Middle East, coupled with a reluctance to use that power, has resulted in the proverbial power vacuum. This has enticed these three states to exercise their own expansionist dreams, fueling their own versions of “Make X Great Again,” where X=Russia, Turkey and Iran. How these imperial designs and competitions will play out remains to be seen.

Note EU-Digest: Russia in fact has now taken over the US leadership position in he Middle East,  assisted by Assad and Erdogan. As a result Erdogan has thereby created a major breach on NATO's Southern flank, by aligning himself with Putin, making the creation of an independent EU military force, and kicking Turkey out of the NATO an urgent requirement...  . 

Read more at: Russia, Turkey, Iran reassert glory of past empires in today's Middle Eas - The Jerusalem Post

7/10/19

Offshore drilling: Turkey slams the EU claim that drilling for oil in Cypus territorial waters is illegal

TURKEY. Turkey slams EU claim that drilling off Cyprus is illegal Turkey said on Wednesday it rejected Greek and European Union assertions that Turkish drilling for gas and oil off Cyprus was illegitimate, saying they showed the EU could not be an impartial mediator on the Cyprus problem.


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6/18/19

Turkey-EU Relations: EU may suspend Turkey customs union talks

EU states will threaten to freeze talks on an upgraded customs union with Turkey if it does not stop drilling for gas in disputed waters near Cyprus, according to draft conclusions of a General Affairs Council on Tuesday seen by the Bloomberg news agency.

The EU "stands ready to respond appropriately and in full solidarity with Cyprus," the draft text said, following defiant Turkish statements over the weekend.

Read - Report: EU may suspend Turkey customs union talks

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3/27/18

EU-Turkey summit ends with 'no solutions' - by Nikolaj Nielsen

EU relations with Turkey remain tense following a meeting in Bulgaria where leaders from both sides outlined differences.

Speaking to reporters in the Black Sea resort of Varna on Monday (26 March), European Council president Donald Tusk said no solutions or compromises had been found between Ankara and the EU.

"If you are asking me if we achieved some solutions or compromises, my answer is no. What I can say that is that I raised all our concerns, as you know it was a long list," he said.

Tusk, along with European Commission president Jean-Claude Juncker and Bulgaria's prime minister Boyko Borissov, had met with Turkey's president Recep Tayyip Erdogan as part of a broader effort to improve fraught relations.

The two sides found common ground on migration, an area of cooperation that appears only to underscore tensions elsewhere. Outstanding internal issues on rule of law, the mass jailing of journalists, Turkish assertive military forays in northern Syria, wider conflicts with Cyprus and the detention of Greek soldiers, remain unresolved.

EU leaders had only last week in a summit in Brussels roundly condemned Turkey's "illegal actions in the Eastern Mediterranean and the Aegean Sea" and demanded that Ankara respect the sovereign rights of Cyprus to explore and exploit its natural resources.

The same message was repeated in Varna, with Erdogan stating that he had handed over information to the EU leaders to explain Turkey's position that he claims respects international laws.

"Not until the European Union stops being overly critical, in particular certain members of the EU, we will not be able to engage fully in improving the relations," said Erdogan.

Read more: EU-Turkey summit ends with 'no solutions'

2/12/18

EU-Turkey Relations Going from Bad to Worse: EU tells Turkey to avoid damaging actions after Cyprus ship incident

The European Union’s executive on Monday called on Turkey to “refrain from any actions that might damage good neighbourly relations” after Cyprus, a member of the bloc, accused the Turkish military of obstructing a ship exploring for gas.

Cyprus is one of several states, including Israel and Lebanon, racing to tap gas deposits in the eastern Mediterranean.

Greek Cypriots run Cyprus’s internationally recognised government, while Turkish Cypriots run a breakaway state recognised only by Ankara in north Cyprus and say resources around the island belong to them too.

Cyprus on Sunday said the Turkish military had obstructed a vessel contracted by Italian oil company Eni which was approaching an area to explore for natural gas.

“Turkey needs to commit unequivocally to neighbourly relations and avoid any kind of source of friction, threat or action directed against a member state,” a spokeswoman for the executive European Commission said.

“The EU also stresses the need to respect the sovereignty of member states over their territorial sea and airspace.”

Read more: EU tells Turkey to avoid damaging actions after Cyprus ship incident | Euronews

5/23/17

TURKEY - EU In Depth: What is all the EU-Turkey uproar about? - Cengiz Aktar

The euobserver notes that for some time now, Turkey-Europe relations have been reduced to monologues and non-coordinated actions by decision-makers on both sides.

Turkish leaders take every opportunity to disregard European norms, values and principles in order to claim Turkey’s singularity, if not superiority. This trend has accelerated since the 15 July 2016 coup attempt, after which the ruling regime happily took the opportunity to suppress all meaningful dissent.

Centuries-old anti-Western sentiment in Turkish politics is now riding the wave, and Europe-bashing is the favourite topic of endless Turkish electoral consultations.

EU accession negotiations are stuck with no less than 14 chapters blocked in connection with the ongoing disputes over Cyprus. The northern part of the island is under Turkish control.

There is no progress whatsoever on the 15 chapters under negotiation. Talks have been concluded on only one chapter so far and the Turkish side is, understandably so, not interested in opening the remaining 3 chapters as they pertain to social policy, competition policy and public procurement.

Meanwhile, the European Commission’s yearly Progress Report on Turkey’s advancement towards membership is thrown ostensibly into the wastepaper basket.

Relations with the European Parliament are at their lowest level. The latest recommendation of the parliament to freeze the negotiations with Ankara has been declared null and void by Turkey's EU minister.

The rapporteur for Turkey at the EU parliament is an undeclared persona non grata in the country. Indeed, the last meeting of the Joint Parliamentary Commission between members of the Turkish parliament and the EU parliament dates back to May 2015.

Bilateral relations with EU member states’ politicians are also at their lowest point. We see a situation where any non-complacent declaration or action from European side is countered with accusations of being “Nazis” or “fascists”.

There is no more political dialogue on any issue of common concern except the shameful refugee deal of March 2016, in which Turkish authorities are acting on behalf of the EU to patrol for refugees moving towards the European continent.

Turkish society no longer feels the benefits of the so-called pre-accession phase, during which a candidate country thoroughly prepares for membership.

The harmonisation of national legislation with the acquis communautaire, the body of shared EU laws and principles, already brings with it a sort of preview of what's to come after joining the bloc. Although it could be felt strongly between 2000 and 2005, the EU dynamics began to slowly fade away ever since.

Sub-committees in charge of EU preparations in the Turkish administration are being dismantled and the pre-accession funds (around €4 billion for 2014-2020) are under-used due to a lack of adequate projects.

All in all, there is an obvious backlash in terms of European political and economic and criteria. This was demonstrated spectacularly by the political push for the reinstitution of the death penalty, abolished since the year 2000.

Today, Ankara openly rejects EU membership through its actions and intentions.

On the European front, the EU commission - i.e. the secretariat in charge of preparing any candidate country for membership - is busy with paper pushing, as the negotiations are basically at a total standstill. This is due to the opposition of Austria and the Netherlands, in addition to the above mentioned “old” blockages.

Moreover, there has been a decision to halt any substantive contact with Turkish authorities, at least until the end of German elections in autumn.

The Schengen visa exemption for Turkish citizens, which has been negotiated since 2013, looks impossible to implement under the present regime.

MEPs are now, with a few exceptions, against Turkey’s membership, especially since the 16 April referendum.

In the EU member states, Turkish authorities had been marginalized even before the present strains - now they are avoided even for photo-ops.

Finally, every single European decision-maker knows that Turkey doesn’t comply with the Copenhagen Criteria, a compulsory set of benchmarks for every future candidate country.

To cap it all off, following an unfree and unfair referendum, Turkey has now been forced to adopt a presidential regime without checks or balances - much like the 1930s fascist governments of continental Europe.

So, what is all of this noise about pretending, on both sides, that membership negotiations are on track and relations are going to continue like before?

What is all of this fuss by some European politicians who are suddenly choosing to stand by the Turkish democrats, especially those in jail for months?

What is all of this tragic comedy by Federica Mogherini, the EU's foreign affairs chief, to declare to the same democrats, with a disgraceful disdain for the European values, that Europe “respects” the result of the referendum, i.e. the choice of a fascist regime?

Let’s start with the Turkish obsession of maintaining a relationship by angrily reacting to warnings about human rights violations and other misdoings.

Economic vulnerability is probably the answer.

The administration of the Turkish president, Recep Tayyip Erdogan, has accumulated mistakes over years, refrained from in-depth reforms and ended up by becoming dependent of high interest rates to continue to attract speculative capital, to run the economy and fill the deficits.

High unemployment, reduced growth, feeble research and development, a weak education system, poor savings rates, the drying up of foreign direct investment from EU countries - all these structural problems are potentially explosive.

The regime - despite its natural tendency towards Europe-bashing - naively thinks that the present status quo with the EU is sufficient to keep the economy afloat. No more, no less.

As for the Europeans, things are more complicated - as can be seen in the chaotic responses to a clearly lifeless candidacy.

Firstly, the failed candidacy of Turkey since 1973 is a unique case in the history of enlargement. Europe does not have an institutional memory on how to deal with the problems it throws up, exactly like Brexit.

Secondly, the economic and strategic interests are a cause for concern.

In 2016, Turkey was the EU's 4th biggest export destination with €78 billion worth of trade, and 5th biggest import source at €66 billion.

Many of these companies are European at both ends, yet they display a cautious approach to any radical move.

Strategically speaking, Europe and the West in general are adamant about keeping Turkey in Nato and out of the Russian sphere of influence. As for the refugee deal, although it is important, it is still a temporary issue which will lose steam sooner or later.

Thirdly, speaking gently to Turkish democrats may be a cost-free way of soothing consciences. However, the fact remains that the “support” cannot go beyond words and, without governmental commitment, there is no viable indirect channel to civil society.

Fourthly, and these concerns notwithstanding, Europeans seem rather pleased with the failed candidacy of Turkey. Right from the beginning, the prospect of Turkey joining the EU has never inspired a completely determined and resourceful response from Europe.

in addition to open foes like Nicolas Sarkozy, a former French president, the EU considered Turkey’s candidacy to be no different from any other candidacy.

Today, the historic rendezvous that started in 1959 has lamentably ended at the cost of all. The official end of negotiations is not 'if', but instead 'when'.

Now if one needs to be serious and concentrate on the “achievable” regarding the future of EU-Turkey relations, as well as the containment of the regime, there are not many options left.

The revision of the customs union agreement of 1995 as the second best formula looks bleak, both technically and politically.

In an editorial the euobserrver notes : A customs union cannot function without the final objective of membership. Politically, those who hope to tie the revision of the agreement into conditions of economic and political good governance are following a pipe dream - in view of the present regime.

One should understand that the Erdogan regime’s codes are structurally anti-European. Likewise, member states that are against the continuation of negotiations are also against the revision of the customs agreement.

The free trade agreement (FTA) option still remains, like with any other non-EU country, but maybe an enhanced one in the case of Turkey, which has already integrated to a certain degree.

As for the containment, with a lack of any concrete leverage, there are no quick fixes.

The only principle, though, should be to avoid the appeasement of that kind of regime, unlike what had happened in Munich in 1938.

EU-Digest


3/4/17

European Parliament votes to end visa-free travel for Americans - by Jon Sharman

The European Parliament has voted to end visa-free travel for Americans within the EU.

It comes after the US failed to agree visa-free travel for citizens of five EU countries – Bulgaria, Croatia, Cyprus, Poland and Romania – as part of a reciprocity agreement. US citizens can normally travel to all countries in the bloc without a visa.

The vote urges the revocation of the scheme within two months, meaning Americans will have to apply for extra documents for 12 months after the European Commission implements a “delegated act” to bring the change into effect.

The Commission discovered three years ago that the US was not meeting its obligations under the reciprocity agreement but has not yet taken any legal action. The latest vote, prepared by the civil liberties committee and approved by a plenary session of parliament, gives the Commission two months to act before MEPs can consider action in the European Court of Justice.


Australia, Brunei, Japan and Canada were also failing in their obligations, but all four have lifted, or are soon to lift, any visa restrictions on travel for EU citizens

The Commission is legally obliged to act to suspend the visa waiver for Americans, but the European Parliament or the Council of the European Union have the chance to object to the “delegated act” it uses to do so.In December, MEPs pressed for the move in order to “encourage” Washington to play its part, according to a statement by the parliament.

But Migration Commissioner Dimitris Avramopoulos warned of “consequences”, including potential “retaliation” and a drop in visitor numbers precipitating substantial losses for the continent’s tourism industry.

In December, MEPs pressed for the move in order to “encourage” Washington to play its part, according to a statement by the parliament.But Migration Commissioner Dimitris Avramopoulos warned of “consequences”, including potential “retaliation” and a drop in visitor numbers precipitating substantial losses for the continent’s tourism industry.

But Migration Commissioner Dimitris Avramopoulos warned of “consequences”, including potential “retaliation” and a drop in visitor numbers precipitating substantial losses for the continent’s tourism industry.

Just days ago the Council said it would liberalise the visa regime for citizens of Georgia travelling into the EU.

Georgians can now, subject to final approval of the regulation, stay in any EU  country for 90 days in any period of 180 days without needing a visa.

Carmelo Abela, Malta’s minister for national security, said: “This agreement will bring the people of Georgia and the EU closer together and will strengthen tourism and business ties. It follows the completion of the necessary reforms by Georgia, addressing document security, border management, migration and asylum.”

Last month it was reported that the EU was considering the adoption of a US-style electronic travel permit scheme – a move that could create a new administrative hurdle for British tourists after Brexit.

Read more: European Parliament votes to end visa-free travel for Americans | The Independent

2/11/15

Homosexuality tolerated but not accepted throughout the EU, as Slovakia votes against same-sex marriage in referendum


Gay Europe still has a long way to go
For decades, homosexuality was a taboo topic in Slovakia. It has only entered public discourse in the last 10 years.tolerated

The country, which joined the EU in 2004, has an anti-discrimination law that protects lesbians and gay men.

But neither same-sex marriage nor registered partnerships exist. Homosexuals are also not permitted to adopt children. Since the summer of 2014, marriage has been defined in the Slovak constitution exclusively as the union of a man and a woman.

On Saturday February 7, Slovakia votes against same sex marriage in referendum

Unofficial reports announced that about 54 percent of voters opposed the law [AFP report], while 44-percent favored it. Last month, conservative advocacy group Civil Initiative for the Family and the Rights of Children, with the help of Catholic supporters, collected and filed the required 40,000 signatures [STA report] to challenge the law to a referendum vote. Labor, Family and Social Affairs Minister Andrej Vizjak [official profile, in Slovenian] responded to the referendum results, saying that the government would respect the will of the people [statement audio, in Slovenian] and would draft a new proposal. 

Since 2004, 13 nations have joined the European Union and 10 of them either prohibit or do not recognize homosexual marriage, while the remaining three allow some legal "partnership" recognitions but not on the same level as heterosexual marriage.  In the most recent vote on the issue, in Croatia on Dec. 1, the Catholic and Orthodox churches led a strong campaign against same-sex marriage.

Croatia entered the European Union (EU) in July last year, making it the 28th and newest member of the union.  Among its 4.4 million citizens, 87.8% identify as Roman Catholics and 4.4% as Orthodox Christian.  After the center-left government crafted a same-sex “life partners” law back in May, the Catholic Church and other denominations rallied behind a referendum to amend Croatia’s constitution to legally define marriage as between one man and one woman.

The marriage question was the third referendum in Croatia since the country became independent in 1991.

The referendum asked, “Do you agree that marriage is matrimony between a man and a woman?” As reported by the state electoral commission to numerous media, 65% of Croatians voted “yes” and 34% voted “no.” .

Besides Croatia, 12 other nations, all from Eastern Europe, have joined the EU since 2004.  Not one of those nations legally recognizes homosexual "marriage" and only three permit some legal standing for same-sex couples.

Probably Zelka Markic, the leader of “In the Name of the Family,” which pushed hard in favor of the referendum in Croatia, gave the best possible (democratic) answer to solving this issue, when she said: “We believe that marriage, children, and family are such important issues that the whole society has to decide on them -  by a referendum - and not just by a Government decree or law, unless it has the support of the majority.”



EU-Digest

12/6/14

Offshore oil exploration: Turkish PM visits Greece amid tensions over Cyprus energy rights

The Turkish Prime Minister has begun his two-day visit to Greece amid tensions over energy exploration rights around Cyprus.

Ahmet Davutoglu called for an agreement over exploiting hydrocarbon deposits in the eastern Mediterranean after the issue caused the breakdown of peace talks between Greek and Turkish Cypriots in October.

“Our aim is the further development of Greek-Turkish relations and in order for this goal to be achieved our governments have pledged to continue cooperation at a steady pace,” commented the Greek Prime Minister Antonis Samaras.

“We do not wish any tension either in the Aegean or in the eastern Mediterranean. We can solve all our problems through dialogue. Whatever our differences or our different approaches are we should continue to talk,” the Turkish prime minister added.

Read more: Turkish PM visits Greece amid tensions over Cyprus energy rights | euronews, world news

7/2/14

Cypriot Economy Better Than Expected Says EU - by Nektaria Stamouli

Cyprus's economy is expected to contract less than expected this year before returning to growth in 2015, according to a European Commission report Wednesday, which added that the Mediterranean island's economic adjustment program remains on track.

The European Union's executive arm said Cyprus's economy is now forecast to contract 4.2% in 2014, down from an estimated 4.8% previously, largely because the economy last year was better than expected.

The report, which was conducted after a review of the program by the Commission, the European Central Bank and the International Monetary Fund, said that Cyprus's economy is projected to grow 0.4% next year. 

However, growth thereafter will only gradually improve, with domestic demand weighed down by very high levels of private-sector indebtedness.

"While the increase in unemployment has slowed significantly, large non-performing loans are constraining the ability of banks to supply credit to the economy," the report said.

Cyprus agreed a 10 billion euro ($13.7 billion) rescue package in March 2013 as the country's banking system teetered on the brink of bankruptcy.

Read more: Cypriot Economy Better Than Expected Says EU - WSJ

10/17/13

Turkish dam to transport water to Cyprus in final stages

The first phase of a huge project launched by the Turkish government to transport 75 million cubic metres of fresh water under the Mediterranean to the Turkish part of Cyprus has almost been completed, report Turkish media.

The construction of the Alakopru dam in the Mersin province (where the water will be collected for Cyprus) is expected to be completed in a few weeks, said project director Ali Cakmak. In a few years, water from Anatolia will flow from Alakopru to Cyprus through a 78-kilometre pipeline under the Mediterranean between Mersin and Gecitkoy, near Girne (Kyrenia) in the northern part of Cyprus. About 15 million cubic metres of water will go to the taps of Turkish Cypriot homes, while another 60 million will be earmarked for irrigation purposes, reports Zaman Online. The island of Cyprus (split down the middle by the Turkish military intervention in 1974 in the northern section, where a breakaway Turkish Cypriot Republic was proclaimed that has been recognised only by Turkey) suffers regularly from periods of drought.

The governor of Mersin recently called the project ''the pride of Turkey''. The arrival of water from Anatolia, Hurriyet said, is expected to contribute a great deal to the development of the Turkish Cypriot economy, especially as concerns agriculture. (ANSAmed).

Read more: Turkish dam to transport water to Cyprus in final stages - Economy - ANSAMed.it

8/26/13

Cyprus: Government has specific strategy on Cyprus solution

The Cyprus Government has not received any information that the United Nations is pushing for an interim solution on the Cyprus problem, based on the Ghali Set of Ideas, introduced in 1992 by the then UNSG Boutros Ghali.

Speaking to the press after a three-hour meeting in the presidential retreat in the Troodos Mountains, the Spokesman pointed out that the Government has a specific strategy on the resumption of the talks, adding that no information or discussion has taken place at any level related to an interim solution based on the Ghali Set of Ideas.

Stylianides noted that the Government insists that the talks must be well prepared so that they have successful results, pointing out that no preconditions have been put forward before the President of the Republic for the resumption of the talks.

He also revealed that the President will be sending letters to the international community, underlining our insistence on a thorough preparation for the talks.

Cyprus has been divided since 1974, when Turkish troops invaded and occupied 37% of its territory.
Repeated UN-led rounds of peace talks have so far failed to bring about a negotiated settlement that would reunite the island.

Read more: Government has specific strategy on Cyprus solution | Cyprus Mail

7/25/13

Russia’s military: Heading for Cyprus? - by Amanda Paul

Russia and Cyprus have close ties both economically and politically. In a recent interview by the Russian news agency ITAR-TASS, Cypriot Parliament Speaker Yiannakis Omirou expressed his gratitude to the Russian government for its solidarity with Cyprus over the past five decades, particularly “the support that Russia has been giving within the framework of the UN Security Council in the light of threats on the part of Turkey.”

Meanwhile, Cyprus has stood by Russia even on sensitive issues — for example, during the recent annual vote on the UN Resolution regarding the status of refugees and internally displaced people from Georgia’s Abkhazia and Tskhinvali region. The main elements of this resolution include: the recognition of the right of all refugees and internally displaced persons to return to their homes, respect of the property rights of those persons, the prohibition of forced demographic changes, etc. These elements match Greek Cypriot demands vis-à-vis its own refugee/internally displaced persons (IDP) issue in the context of the decades-old Cyprus problem, yet Cyprus abstained — pure realpolitik!

Since returning to the presidency, Russian President Vladimir Putin has stressed the importance of a strong military, including Russia seeking a greater presence in the Mediterranean. Russia has been strengthening its presence, establishing a floating Mediterranean naval flotilla — consisting of some 16 warships — for the first time since the collapse of the Soviet Union. In June Putin stated, “This is a strategically important region, and we have tasks to carry out there to provide for the national security of the Russian Federation.” It is speculated this deployment is partially meant to deter any NATO move towards Syria.

With the future of Russia’s Tartus naval base on Syria’s Mediterranean coastline looking uncertain (Moscow recently evacuated all personnel), Russia is looking for other opportunities to maintain and strengthen its foothold in the Middle East. Therefore, increased speculation over a possible military presence on Cyprus is not surprising.

According Russia’s ambassador to Cyprus, Moscow has not raised the issue of a permanent base on Cyprus. This is just as well because even with the cozy ties it would be highly controversial and unlikely to happen.

Not least, it would upset a number of parties including the EU, the US and Turkey, creating further waves in all these relationships. It could stop Cyprus from joining NATO’s Partnership for Peace Program. Cyprus is currently the only EU member not part of this program, although President Nikos Anastadiades had indicated an interest.

What is being discussed is an agreement that would allow Russia to use Limassol port for its navy (comparable to the agreement that Germany has that allows Berlin to dock warships and carry out land exercises) and Andreas Papandreou Air Base at Paphos for its military aircraft (presently only France has such permission). Foreign and defense ministers have met to discuss details.

Read more: Russia’s military: Heading for Cyprus? « Wider Black Sea

5/3/13

Offshore Banking: Britain under pressure to clean up Caribbean, S. American tax havens

British Overseas Territories in the Western Hemisphere will abandon their "tax haven" status as London struggles to raise cash and counter European charges its Caribbean and other overseas territories encourage tax evasion.

Chancellor of the Exchequer George Osborne said London signed agreements with its overseas territories that will automate tax information exchange between Britain, its major international partners and Europe.

The sharing of tax information exposes bank account holders to tax collection authorities not only in Britain but also other countries and follows large-scale bank account disclosures secured as part of the European Union's financial rescue of Cyprus.

EU pried the information out of Cyprus by encouraging a media vilification campaign that focused on Russian account holders and suspected money laundering activities in Cyprus.

But the measure also targeted European tax evaders, Middle East financiers and anyone else interested in hiding assets from the taxman.

EU campaigns were aided by online leaks of alleged tax evaders' personal data. Luxembourg and non-EU Switzerland have also given in -- though only to some degree in the case of Switzerland -- to EU demand for disclosures.

Read more: U.K. under pressure to clean up Caribbean, S. American tax havens - UPI.com

4/10/13

Cyprus: Cyprus Airways to remain in operation until end of summer season

Cyprus Airways, the island’s national carrier, will continue their operation until the end of the summer season and at the same time the company’s Board of Directors will enter into negotiations for a possible strategic investor.

Speaking to the press Wednesday, after a Cabinet meeting during which the developments at Cyprus Airways were discussed, Government Spokesman Christos Stylianides said that for specific reasons, the Ministers decided that the company should be kept in operation during the summer season and that after that, a strategic investor should be found the soonest possible.

He noted that a basic prerequisite is the restructuring plan of the company to be accepted by all interest parties.


Read more: Financial Mirror dot com - Cyprus Airways remain in operation until end of summer season

4/3/13

I.M.F. and E.U. Set Conditions for Cyprus Bailout - by James Kanter

The International Monetary Fund said on Wednesday it would contribute €1 billion, or about 10 percent of a bailout package for Cyprus in exchange for widespread reforms of the Cypriot economy.

“This is a challenging program that will require great efforts from the Cypriot population,” Christine Lagarde, the managing director of the I.M.F., said in a statement. 

The goal was to “stand by Cyprus and the Cypriot people in helping to restore financial stability, fiscal sustainability and growth to the country and its people,” Ms. Lagarde said in a second statement she issued jointly with Olli Rehn, the European Union commissioner for economic and monetary affairs. 

The statements follow agreement on Tuesday between Cyprus and the so-called troika of international organizations — the European Central Bank, the European Commission and the I.M.F. — that painstakingly negotiated the €10 billion, or $13 billion, bailout and the terms of the deal.

Read more: I.M.F. and E.U. Set Conditions for Cyprus Bailout - NYTimes.com

4/1/13

Russia - Cyprus: Shuvalov Says No Help for Russian Cyprus Account Holders- by Alexander Panin


The government will not intervene on behalf of Russians hit by a drastic restructuring of Cyprus' banking system, though it will consider specific cases involving state-linked companies, First Deputy Prime Minister Igor Shuvalov said.

"If somebody gets caught and loses money at the two largest banks, it's a shame, but the Russian government isn't going to do anything about it," Shuvalov said in a television interview on Sunday.
But the government will look into specific cases of companies with state ownership that took severe losses because of the failed Cypriot banking system, he added. It will be done openly and in Russia. "But it doesn't mean it is necessary to help the Republic of Cyprus," Shuvalov said.

Last week, the Eurogroup agreed on a 10 billion euro ($12.8 billion) bailout scheme for Cyprus' banks. In order to receive these funds, the second-largest financial institution in the country, Laiki Bank, will have to be shut down, and the largest lender, The Bank of Cyprus, restructured. 

Read more: Shuvalov Says No Help for Cyprus Account Holders | Business | The Moscow Times

3/30/13

Cyprus: Bank of Cyprus big savers to lose up to 60%

A Central Bank official and a senior finance ministry technocrat says Bank of Cyprus savers with over €100,000 could take losses of up to 60 per cent.

The officials, who spoke on condition of anonymity because they're not authorized to publicly discuss details of the issue, said Saturday that deposits over €100,000 ($129,000) at the country's largest lender will lose 37.5 per cent of their value after being converted into bank shares.

They said they could lose up to 22.5 per cent more, depending on an assessment by officials who will determine the exact figure aimed at restoring the troubled bank back to health.

Bank of Cyprus big savers to lose up to 60% - Business - CBC News

3/27/13

Cyprus Sets Up Tight Controls as Banks Prepare to Reopen

Cyprus‘s government announced severe restrictions Wednesday on access to the country’s bank accounts, hoping to curb what is nonetheless likely to be a rush to withdraw money when banks reopen on Thursday for the first time in nearly two weeks.

Read more: Cyprus Sets Up Tight Controls as Banks Prepare to Reopen - NYTimes.com