Cyprus
Moldova Invest in dialogue with E.S. Marios S. Kountourides, Ambasador of Cyprus to Romania
Relations between România and Cyprus are exceptionally strong, characterized by friendship, cooperation, and mutual understanding.
The establishment of diplomatic relations between the two countries immediately after the proclamation of the independence of the Republic of Cyprus in 1960 was a significant step in strengthening bilateral ties. Thus, this year marks the 64th anniversary of the establishment of diplomatic relations between the two countries.
Cyprus is one of the largest foreign investors in Romania, focusing on sectors such as information technology, energy, and agriculture. Romanian companies’ investments in Cyprus target areas such as tourism, real estate, energy (with a focus on renewable energy), and financial services.
His Excellency Marios S. Kountourides, the Ambassador of Cyprus to Bucharest, emphasizes that the economic cooperation between our countries is reinforced by cultural and educational exchanges, which facilitate mutual understanding and connections.
E.S Marios S. Kountourides: “Romania is a respected European partner, transferring its foreign policy goals to the political family to which it belongs – the European Union.”
In this interview, His Excellency Marios S. Kountourides, the Ambassador of Cyprus to Bucharest, explains in detail the nature of these relations and their evolution over time.
His Excellency Marios S. Kountourides, the Ambassador of Cyprus to Bucharest, is also accredited in the Republic of Moldova, explaining in detail within this dialogue the nature of these relations and their evolution over time.
Your Excellency, please provide us with an overview of the relationship between our countries, defined by the current realities existing in terms of geopolitical and economic aspects. The year 2024 marks the 64th anniversary since the establishment of diplomatic relations between Cyprus and Romania. The relationship between the two countries dates back much earlier and is defined by mutual understanding and collaboration between Cyprus and Romania, strengthened through cooperation within the European Union.
May I from the outset express my appreciation for being given the opportunity to reach through Moldova Invest your esteemed readers and try to give an overview of certain facts concerning the Republic of Cyprus and of course its relations with the friendly countries of Romania and Moldova.
As you rightly point out, 2024 marks the 64th anniversary of the establishment of diplomatic relations between Cyprus and Romania, Romania being one the first countries that recognized the Republic of Cyprus back in 1960. Cyprus ranks as the fourth largest foreign investor in Romania. Diplomatic relations between Cyprus and Romania are at an excellent level, characterized by the absence of disagreements and conflicts.
The relations between the two countries have steadily developed through a series of bilateral agreements that attest to the excellent relationship and collaboration between Cyprus and Romania. The existence of a large number of Romanian communities in Cyprus determines the steady and positive evolution of relations between Cyprus and Romania. The global scene is currently under a series of monumental crises. States are called to respond on a multitude of levels on issues related to the economy, the environment, war, and terror. The relations between our countries are guided by a relationship based on mutual understanding that sees to advance the common interests of both parties.
Through the exchange of visits on different levels and the signing of agreements that relate range from economy to defense cooperation Cyprus and its partners aim to combat issues that are mostly a result of actions taken by foreign forces to disrupt peace and stability.
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Romania is a respected European partner, transferring its foreign policy goals to the political family to which it belongs – the European Union. The bilateral relations between Cyprus and Romania can be characterized as relations of friendship, trust, and solidarity. The prospects for further development of bilateral relations are enormous and the political will is a given. At a time when Europe is faced with serious challenges, Romania and the Republic of Cyprus share similar approaches: they support a stronger Europe, a more cohesive Europe, close to its citizens, capable of ensuring their security and well-being.
In recent years, increased high-level contacts reflect the common goal of strengthening bilateral dialogue. Trade relations between the two countries are constantly being strengthened and as I have already mentioned, the Republic of Cyprus remains in the top five foreign investors in Romania. The progress of the cooperation between Cyprus and Romania on a commercial and economic level shows the way for the further expansion and deepening of the bilateral relations of the two countries. Cyprus and Romania are countries that offer security, economic stability, tax and investment incentives, modern infrastructure, and specialized human resources, characteristics that make them attractive investment destinations for many foreign companies.
There is scope for further promotion and development in other sectors as well, such as energy, modern technology, research, and innovation. The continuous upgrading of commercial and business cooperation between Cyprus and Romania can be an essential driver for improving the efficiency and competitiveness of their economies. With the presence of Cyprus and Romania in the European Union, the prospects for business cooperation are strengthened, and the single economic space is expanded with investment and economic opportunities for both states. Economic cooperation specifically is of vital importance to bilateral relations and both the Cyprus and Romanian Chambers of Commerce have undertaken the task of expanding on this cooperation. Tourism as well is an important factor. Cyprus is grateful to be able to welcome guests from this region who choose to spend their time on our island, acquaint themselves with our culture, and enjoy the beautiful experiences the island has to offer. We are also taking steps to increase our cooperation in the education field as well as research and innovation.
“The relationship between Cyprus and Republica Moldova is multifaceted and is guided by mutual respect and cooperation”
In as far as Moldova is concerned, the relationship between Moldova and Cyprus is multifaceted and is guided by mutual respect and cooperation. Geopolitically, both countries share a commitment to stability, democracy, and European integration. Cyprus, being a member of the European Union, strongly supports Moldova’s European aspirations. We are therefore delighted that last December the European Council decided to open accession negotiations with Moldova.
Cyprus’s experience in joining the European Union back in 2004, despite the fact that 40% of the island not being under the effective control of the Government, due to the Turkish invasion of 1974, can, taking into account the present realities in Moldova, contribute to the fulfillment of the latter’s European aspirations.
On the political front, Cyprus remains steadfast in its approach regarding its principled position which calls for the respect of the territorial integrity and sovereignty of the Republic of Moldova, within its internationally recognized borders as well as the peaceful solution of the Transnistrian issue.
In the economic field, the ties are characterized by growing collaboration. Investments in Moldova from Cyprus investors including companies and individuals, are primarily in the real estate, and service sectors. For example, one of the leading Audit and Advisory Firms in Moldova, member of an international network, was incorporated and is being run by Cypriot individuals.
The trade exchange, though modest, has potential for growth. Cyprus can offer expertise in areas like tourism, financial services, and renewable energy, sectors where it has excelled over the years. Similarly, Moldova’s agricultural sector, including wine production, presents opportunities for Cypriot businesses.
The cultural and educational exchanges further strengthen our bonds, with both countries benefiting from shared experiences and knowledge transfer.
How do you assess the current climate of trade and investments current climate of trade and investments in Cyprus, and what are the main areas or sectors that attract the interest of Romanian companies?
Cyprus offers a healthy investment climate characterized by a strategic geographic location, a well-developed legal and regulatory framework, knowledgeable individuals and high-quality services, along with a business-oriented tax regime. These factors, combined with the country’s membership in the European Union, make Cyprus an attractive destination for investors.
Key sectors attracting investment include tourism, real estate, energy (particularly renewable energy), and financial services. The shipping industry also remains a significant attraction due to Cyprus’s status as a maritime hub.
For Romanian companies, these sectors offer lucrative opportunities. The stability and growth in the Cypriot economy provide a conducive environment for investments.
Additionally, sectors like Information Technology and telecommunications are emerging as areas of interest, given the rapid digital transformation Cyprus is undergoing.
In as far as trade is concerned, Cyprus’s trade with Romania for 2023 (January – December 2023) was at a good level for both markets. Specifi cally, Romania is in the 20th place among the export destinations of Cypriot products. At the same time, the Cypriot market seems to prefer Romanian products, with the result that Romania is in the thirteenth (13th) place in product imports to Cyprus (followed by countries such as the USA, India and the UAE).
Confi rming the above mentioned, the total exports of Cyprus to Romania showed an increase of 39% for 2023 (2022: 30.9 million and 2023: €43 million). Domestic exports of Cypriot products for the year 2023 increased by approximately 26.4% €20.1 million (2022: €15.9 million), while re-exports also showed a large increase of 52.6% (2022: €15 million and 2023: 22.9 million) placing Romania in the 17th position of countries sending products for 2023 (followed by America UAE and Japan). On the contrary, the imports of Romanian products in Cyprus for the same period (Jan. – Dec. 2023) amounted to € 174.5 million, showing an increase of approximately 23.10% compared to the corresponding period of the previous year (Jan. – Dec. 2022: €141.8 million)
One of the factors regarding the increase in total trade between the two countries is due to the continuous promotion and support of Cypriot exporters by the Ministry of Energy, Trade and Industry of Cyprus in collaboration with its Trade Advisors around the world.
It is also a reward for the eff orts of many years for the further strengthening of Cyprus-Romania trade relations, which even in these adverse conditions (economic crisis, pandemic) showed signs of recovery. Regarding halloumi for the seven-month period (Jan. – Jul. 2023), Romania was in 20th place among the importing countries around the world. Halloumi exports to Romania for the seven months of 2032 showed an increase of 49% compared to the corresponding period of 2022 (2023: €118.4 2022 €79.5 thousand) which is attributed to the opening of the catering sector including restaurants, hotels, cafes, refreshment bars, etc.
Certainly, the systematic promotion of the traditional P.O.P. of Cyprus cheese in large cities of Romania is a fact that must be taken into account for increasing its sales. It is noted that the trade balance between Cyprus and Romania has been in defi cit for many years to the detriment of Cyprus, but this is normal since Romania has a larger production. It is important to emphasize commercial transactions between Cyprus and Romania for the mutual future benefit of both sides.
The love and appreciation of the Cypriots for Romania is the main pillar of the excellent relations between the two countries. There are more than 40,000 Romanians living and working in Cyprus, which is one of the most visible aspects of Cyprus’ relations with Romania. Romanians are well integrated into Cypriot society. A large number of Cypriots graduated from Romanian universities, some married and stayed there, some returned to Cyprus with their spouses.
What makes Cyprus an attractive tourist destination and what steps have been taken to make Cyprus accessible to Romanian citizens not just living in the vicinity of Bucharest?
The Romanian tourism market to Cyprus is experiencing a noticeable upward trend in visitor arrivals. Analysis of recent years indicates a consistent annual increase, with arrivals from Romania in 2023 surpassing those of 2019, the peak tourism year prior to the pandemic, by a significant 41%. Arrivals from Romania in 2023 reached over 80k travelers.
Connectivity between Cyprus and four major Romanian cities – Bucharest, Cluj, Iasi, and Timisoara – is robust, with regular and charter flights servicing two key Cyprus airports, Larnaca and Pafos. Leading tour operators have incorporated Cyprus into their offerings, with additional market players preparing to enter or expand their operations in Cyprus for 2024 in response to growing demand.
“Romania, with its dynamic economy, offers significant opportunities for Cypriot businesses.”
The Cyprus Deputy Ministry of Tourism plays an active role in fostering this growth through various initiatives, including joint business to business promotional events, online media campaigns, and collaborations with airlines, tour operators, and travel agents. Additionally, familiarization trips are organized for media, bloggers, and travel professionals.
Looking ahead to 2024, the focus is on further increasing arrivals from Romania and supporting expanded flight options between the two destinations. Cyprus’s appeal to travelers lies in its 76 Blue Flag beaches, abundant sunshine throughout the year, and an extended swimming season from mid-April to mid-November. Moreover, the island offers rich cultural and historical sites, catering to religious tourism, sports tourism, and weddings.
Furthermore, it must be stressed that an Agreement for Cooperation in the Field of Tourism between the Governments of Cyprus and Romania, has been effective since its signing in Bucharest on 5 January, 1994.
What are the main sectors in Romania where the Republic of Cyprus sees significant investment opportunities? How about in the Republic of Moldova?
Romania, with its dynamic economy, offers significant opportunities for Cypriot businesses. Key sectors include Information Technology, where Romania has shown remarkable growth and innovation, energy (both traditional and renewable), and agriculture. The country’s ongoing infrastructure development also presents opportunities in construction and related industries. The growing consumer market in Romania is another area where Cypriot companies could explore potential.
Moldova presents opportunities primarily in the agricultural sector, given its rich agricultural heritage and wine industry. The IT sector, though in emerging stages, shows potential for growth and investment. Additionally, Moldova’s ongoing efforts to modernize its infrastructure could attract investment in construction and related sectors.
Cypriot businesses can also contribute to and benefit from Moldova’s growing importance on tourism and hospitality.
How do you see the resolution of the conflict in Ukraine?
Ever since the beginning of Russia’s unprovoked war of aggression against Ukraine, Cyprus maintained a firm, steadfast, and principled stance in support of the sovereignty and territorial integrity of Ukraine within its internationally recognized borders.
The end of 2023 and the beginning of 2024 were marked by the largest wave of sweeping missiles and drones attack by Russia across Ukraine’s territory, which resulted in the loss of innocent lives and the destruction of vital infrastructure. Hardly a day passes without massive airstrikes, followed by mourning for senseless loss of life. We express our deep sympathy and strong solidarity with the families and loved ones of those killed and wounded.
We are extremely concerned by Russia’s increasing intensity of indiscriminate attacks against civilians, civilian objects, and critical infrastructure. The people and the government of the Republic Cyprus stand in solidarity with the people of Ukraine, and will continue to do so.
I would like to point out that Cyprus participated in the 4th NSA Meeting on Ukraine’s Peace Formula which took place in Davos on 14/1/24. We were encouraged by the turnout of the meeting and by the commitment to continue to support Ukraine shown by all participants.
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All wars eventually come to an end. However, lasting and meaningful peace comes from negotiations. Hence, diplomacy, determination, and honest intentions is the only key to truly ending the war. Such lasting peace can only be based on the principles of the UN Charter, with full respect for Ukraine’s sovereignty and territorial integrity and the relevant resolutions of the UN General Assembly and International Law. As we are approaching the second anniversary of Russia’s war of aggression against Ukraine, I would like to express the hope that efforts to end this war will bear fruit in the foreseeable future.
In saying the above, we cannot ignore the fact that the Republic of Cyprus, being itself a victim of an illegal invasion and occupation, is deeply saddened by the continuation of Russia’s illegal war against Ukraine and fully empathises with the unfolding drama experienced by the country and its people.
2024 marks 50th anniversary of the unlawful military invasion by Turkey in 1974. Cyprus continues to bear the enduring repercussions, including the continued occupation of 37% of our country’s territory, the uprooting and mass displacement of thousands of Cypriots, the violation of fundamental human rights, the colonisation of the occupied areas and the agonising drama of the families of the missing persons.
The striking parallels between the 2022 invasion of Ukraine by Russia and the 1974 invasion of Cyprus by Turkey fully underscore the shared pain of nations grappling with aggression and occupation on their sovereign territories.
It is for this reason that, despite the impact on our country, Cyprus steadfastly maintains its principled stance and remains fully committed to all the measures taken by the EU and our allies against Russia, in connection with its ongoing aggression against Ukraine.
