Cyprus first choice for investors wishing to invest in Ukraine

Cyprus remains the first choice for foreign investors wishing to invest in Ukraine and for Ukrainian investors wishing to expand and invest through Cyprus in Europe, Russia, India and China.

Out of a total of $56.56 billion, Cyprus remains the country through which the most investments are made in Ukraine totaling $18.71 billion or 33.1%. Germany is second with $6.19 billion (11%) followed by the Netherlands $5.5 billion (9.7%) and Russia with $3.84 billion (6.8%).

Cyprus also ranks first in direct investment (equity capital) from Ukraine to other countries of the world. Specifically Cyprus accounts for $5.82 billion out of a total of $6.57 billion (89%) followed by Russia with $0.36 billion (5.5%) and Latvia with $0.096 billion (1.5%).

The Double Tax Treaty between Cyprus and the former USSR has contributed significantly to this position. This agreement ceases on the 31 December 2013 whereby the new agreement comes into force on 1 January 2014. The new agreement with significant advantages is expected to further boost Cyprus’ number one position.

The excellent political relations between the two countries, the high- quality of professional services which are relatively cheaper than those offered in other competing jurisdictions, the favorable tax system which is one of the lowest in Europe and the system of law in place have also contributed to Cyprus having the first spot.

The above proves that despite the recent turmoil in the banking sector, investors’ confidence in Cyprus has remained strong and will continue to strengthen even more as Cyprus’ economic adjustment process continues with success.

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