The shipping sector has shown resilience, and remains competitive, offering the greatest possible benefits to the Cypriot economy, Deputy Minister of Shipping, Vassilis Demetriades, said on Thursday, after briefing the Parliamentary Committee on Transport on the work of his Deputy Ministry.
In statements after the meeting, the Deputy Minister, responding to questions, said, among other things, that the situation regarding the impact of sanctions against Moscow for the invasion of Ukraine "is manageable", and that efforts are being made to open up to the Asian market as well, so that Cypriot shipping is not dependent on only one or two markets.
Demetriades said he briefed the Commission on the work and activities of his Deputy Ministry, the challenges and prospects facing Cypriot shipping, the recently announced strategy, how the pandemic was managed, but also on green transition, and digital transformation of shipping, "confirming that this sector has shown resilience, and remains competitive offering the greatest possible benefits to the Cypriot economy".
He also said that he informed about the targeted actions for the promotion of shipping and the blue economy to the new generation and specifically to high school students in order to properly inform young people about the career prospects in maritime professions.
In response to a question, Mr. Demetriades said Cyprus, apart from the fiscal framework it enjoys from the EU, "we have also adopted green incentives" which, in essence, seek to reward shipowners and operators whose ships not only comply with international and European legislation on carbon dioxide and emissions reduction, "but are more ambitious and have technical and operational practices that reduce pollutants further than the legislation provides".
In this way, he added, they reward all shipowners and ship operators and it is a sign that Cyprus stands by the industry when implementing practices and policies that contribute to further protection of the marine environment and climate change targets.
"It is a living document, which will become more stringent as international rules are tightened," he said and urged financial institutions to include it in their eligibility criteria when granting loans or financing green approaches to ships and maritime transport.
He said that depending on the extent of the reduction in their environmental footprint, it amounts up to a 30% discount from tonnage tax. For example, he said, if they use fuel of non-fossil origin, then they enjoy the maximum discount which is about 30%.
Asked whether Cypriot shipping is affected by the sanctions against Moscow, Demetriades pointed out that in the fifth package of sanctions, and also in the sixth, which is now under discussion, there was a proposal from the European Commission to affect both ships and shipping. Regarding the fifth package, he said that also with Cyprus' contribution, "after we highlighted the importance of shipping," the sanctions were limited only to Russian-flagged ships.
Right now the sanctions are only on Russian-flagged ships, he said, adding that if the situation remains as it is, "I would say for Cypriot shipping, it is manageable."
"We are fully prepared, depending on the draft sanctions that will be put before us, to highlight again the importance of the sector, both for Cyprus and for the EU," he added.
Demetriades also said that the strategy of his Deputy Ministry is that Cypriot shipping is not dependent on one or two markets.
"That is why we are opening our horizons in the Far East, we will soon announce the opening of an office in Tokyo as well," he said, so that Cyprus' shipping, regardless of the crises and any developments, "remains resilient and competitive."
DISY MP Fotini Tsiridou said that the Government, with the support of her party, "has taken Cyprus' shipping to another level", adding that Cyprus' shipping is ranked 11th globally and 3rd in Europe, while its contribution to the country's GDP, as the Deputy Minister informed them, reaches 7%.
He also said that there is a 60% increase in shipping companies, and that the sector employs 9,000 people.
He also referred to the Deputy Ministry's strategy and green policy, adding that Cyprus "is the only state that has adopted green tax incentives for Cyprus-flagged ships, and they are managed by Cyprus."
He said the committee was informed that in about 15 days a bill will be tabled to give the opportunity for a limited liability shipping company to be able to be established and registered with the Deputy Ministry and not with the Registrar of Companies. She said this is "another weapon for shipping" as it is a legal framework for a shipping register where companies will be registered and taxed by the Ministry of State.
Tsiridou also said that spatial planning for an integrated maritime policy, which is currently under consultation, the so-called "Cadastre of the Sea" is also progressing so that "our sea becomes an engine of development". He said it will also be submitted to the EU so as to create conditions for development in Cyprus' marine environment.
Source: CNA
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