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ISSUE 75 JUNE 18, 2017 PRICE €2.00

Across The

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nomy o c The Businesses E t o i r p y C h s i k r Driving the Tu

INTERVIEWS

ART SCANDAL

PLUS

Warren Luyt Elias Neocleous 'DQLHO :DJHU

How Russian tycoon Dmitry Rybolovlev lost millions of dollars

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ODYSSEY PRESENTS Cybersecurity In Cyprus

CHRISTOS THE FIRST NAME IN ETHICS

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SPECIAL FEATURE

ISSUE 75 JUNE 18, 2017 PRICE €2.00

/HW·V WDON DERXW Cybersecurity “IF YOU SPEND MORE ON COFFEE THAN IT SECURITY, YOU WILL BE HACKED. :+$7·6 025( <28 '(6(59( 72 %( +$&.(' µ

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Former White House Cybersecurity Advisor, Richard Clarke

Business Telephony

We address every communication need of your business! Simple Total solutions for the communication and operational needs of every business.

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Free unlimited intra company calls between fixed and mobile numbers You can have free unlimited intra company calls between all fixed and mobile number registered to Business Telephony service, with a 24 month commitment of the RED mobile numbers registered to the service. The monthly subscription charge of the intra company calls package for RED mobiles is now reduced from €5 to €2 and offers unlimited calls between fixed and mobile numbers.

Business Call Center: 150 www.cyta.com.cy/bbt-business-telephony/en Cyta Business Consultants

Telephony OntheGo

Note that you can include mobile numbers under Business Telephony service that are not registered in the name of the company.

Activate Telephony OntheGo facility, download the app to your smartphone, tablet (Android or iOS) or PC and take your fixed telephone number with you anywhere. The app can be activated simultaneously on up to 3 devices so you can use your fixed telephone number anywhere you are, in Cyprus or abroad, and enjoy the low Cyprus fixed telephony calling charges.

ISSUE 75 JUNE 18, 2017

T H E

B U S I N E S S

M A G A Z I N E

O F

C Y P R U S

CONTENTS SPECIAL PROMOTIONAL FEATURES 73 | Accounting, Audit and Tax Advisory Firms in Cyprus

6 | EDITORIAL 8 | BUSINESS BRIEFING

COVER

STORY

24 | $&5266 7+( ',9,'( 7+( 785.,6+ &<35,27 (&2120< $1' 7+( %86,1(66(6 '5,9,1* ,7 >P[O *`WY\Z YL\UPÄJH[PVU [HSRZ HIV\[ [V resume in Switzerland, we take a brief look at the Turkish Cypriot business scene, including a list of around 80 companies that are playing their part in maintaining the economy of the unrecognised breakaway state in the north of the island and speak to Fikri Toros, President of the Turkish Cypriot Chamber of Commerce, and company manager Mustafa Erk.

Economic & Business Highlights of the past month.

11 | MY WAY

Theodoros Kringos’ management style. Christos Michael

14| THEY SAID WHAT?

Some of the most memorable remarks made by and about Cypriots over the past month.

22

By Jameel Ahmad

108 | Appoint a Lawyer! By Michalis Economides

Went Too Far How Russian tycoon and former BoC shareholder Dmitry Rybolovlev reportedly lost millions of dollars in art frauds carried out by Swiss dealer Yves Bouvier.

18 | The Future of Corporate

Governance Photos from last month’s conference

16

Warren Luyt, Managing Director of Trident Trust Company (UAE), DMCC Branch, on why Dubai has become a jurisdiction of choice among investors and High Net Worth Individuals.

72 | Birth of a 21st Century Law Firm Elias Neocleous talks about his vision for OPZ UL^ ÄYT HUK TVYL

4 | GOLD | The Business Magazine of Cyprus

Interview with George Michaelides, Commissioner of Electronic Communications & Postal Regulation, on Cyprus’ National Cybersecurity Strategy, while 14 companies and organisation present their products and services aimed at data protection and countering cyber-threats.

109 | Premium Spirits Eight market leaders in the premium spirits sector present their products.

18

106 | Non-Compliance and

22| Doing Business in Dubai

39 | Cybersecurity

OPINION 20 | Battening Down the Hatches

FEATURES 16 | The Art-World Insider Who

72

Fifteen leading firms present their services, while senior managers/ executives propose their own new piece of tax reform.

12 | FIVE MINUTES WITH…

the R Risks to Business Daniel Wager of LexisNexis Risk Solutions on the dangers of ignoring compliance requirements.

126 | BOOKSHELF

Six of the latest business titles.

128 | IN GOOD COMPANY How Partners Group maintains a ‘young spirit’ in the workplace.

132 | LUNCH WITH GOLD OLD Elena K. Tsolakis 135 | BUSINESS CLASS SS Natasa Pilides 136 | WHAT’S ON GOLD’s guide to the best cultural events of the coming month. 138 | A DAY IN THE LIFE FE Alexis Tsielepis

138

| EDITORIAL |

Knowledge is Power

PUBLISHED BY IMH ISSN 1986 - 3543

MANAGING DIRECTOR

J

George Michail

GENERAL MANAGER

ust over two years ago, on May 15, 2015, a new era began in efforts to resolve the Cyprus Problem and reunify the island. In Nicos Anastasiades and Mustafa Akinci, we finally had two leaders who appeared not only to share the same vision but also the same determination to reach the agreement that had hitherto eluded so many different combinations of Greek and Turkish Cypriot politicians. Even more encouraging was the fact that Anastasiades and Akinci, both from Limassol and roughly the same age, seemed to get on extremely well and showed genuine signs of friendship. The negotiations have had their ups and downs and, over these two years, we at GOLD have been trying to choose the right moment to provide some fundamental information about the Turkish Cypriot business scene and the economy of the unrecognised entity in the occupied north of the island. In the end, we decided that waiting for the ‘stars to be aligned’ (as Espen Barth Eide might put it) was not the best way of going about things and so, here we are, 10 days before a new (and possibly final) round of reunification negotiations in Switzerland, with a cover story that sheds some light on the Turkish Cypriot economy, the sectors that drive it and the main players. I consider GOLD readers to be among the most enlightened in Cyprus, particularly on the issue of reunification and I do not recall a single interviewee in any of the magazine’s 75 issues who has not stated that he/she is in favour of a settlement. Nonetheless, it is not for nothing that Cyprus has been called a “diplomatic graveyard”, having frustrated generations of negotiators and numerous UN SecretariesGeneral for more than half a century, and we all remember what happened in 2004 when 75% of Greek Cypriots rejected the plan negotiated with Kofi Annan. Based on last year’s parliamentary election results, 43% of voters support parties that actively oppose a federal solution. If agreement is reached, a long campaign of enlightenment will be required to persuade citizens on both sides of the divide – especially the Greek Cypriots – that the solution will be in everyone’s best interests. I write all this because I know that some people – hopefully very few – will object to the mere fact of our talking to Turkish Cypriots and listing Turkish Cypriot companies in a magazine. But knowing that business people on both sides are ready with joint venture plans and in an environment where so little is John Vickers, known about life on “the other side”, I think it’s about time we made our small initial contribution to changing things. KnowlChief Editor edge is power. john@imhbusiness.com

6 | GOLD | The Business Magazine of Cyprus

Daphne Roditou Tang MEDIA MANAGER

Antonis Antoniou EDITOR-IN-CHIEF

John Vickers JOURNALISTS

Artemis Constantinidou, Voula Loizou CONTRIBUTORS TO THIS ISSUE

Jameel Ahmad, Michalis Economides ART DIRECTION

Anna Theodosiou

SENIOR DESIGNER

Alexia Petrou

ASSISTANT DESIGNER

Stephanie Andreou, Marios Kouroufexis PHOTOGRAPHY

Emma Louise Charalambous, Jo Michaelides, Christos Tsekouras, Helena Georgiou MARKETING EXECUTIVE

Kevi Chishios

SALES MANAGER

Neofytos Constantinou SALES EXECUTIVE

Erika Phylakti

OPERATIONS MANAGER

Voulla Nicolaou

SUBSCRIPTIONS

Myria Neophytou PRINTERS

Cassoulides Masterprinters CONTACT 5 Aigaleo St., Strovolos 2057, Nicosia, Cyprus Mailing address: P.O.Box 21185, 1503, Nicosia, Cyprus Tel: +357 22505555, Fax: +357 22679820 e-mail: gold@imhbusiness.com subscriptions: goldsubscriptions@imhbusiness.com www.imhbusiness.com

BUSINESS BRIEFING

AVIATION

AWARDS

Jet2.com

SmartWings

Leisure airline and package holiday specialist Jet2.com has announced that it will be operating two new routes between Paphos and Belfast International and Larnaca and Birmingham respectively from May 2018.

Low cost Czech airline SmartWings has begun [^V ^LLRS` ÅPNO[Z 4VUKH` HUK ;O\YZKH` between Larnaca and Prague. Orthodoxou Aviation has been chosen as the airline’s General Sales Agency in Cyprus.

CYPRUS TALKS IN GENEVA

T

FINANCE

IN THE NEWS

he leaders of Cyprus’ two communities and the UN Secretary-General have agreed on the need to reconvene the Conference on Cyprus in Geneva on June 28. Nicos Anastasiades and Mustafa Akinci have also agreed to continue discussions on all the outstanding issues of territory, property and governance and power-sharing.

DELOITTE NAMED CYPRUS TAX FIRM OF THE YEAR +LSVP[[L *`WY\Z ^HZ UHTLK ¸*`WY\Z ;H_ Firm of the Year 2017â€? for the fourth time at SHZ[ TVU[OÂťZ 0U[LYUH[PVUHS ;H_ 9L]PL^ 0;9 ,\YVWLHU ;H_ (^HYKZ JLYLTVU` H[ [OL :H]V` /V[LS PU 3VUKVU 7PLYPZ 4HYRV\ ;H_ 3LNHS Services Leader collected the award on behalf of Deloitte Cyprus. Christis Christoforou, CEO of Deloitte Cyprus said “We are very proud to be recognised internationally as the leading tax Ă„YT PU *`WY\Z H ZPNUPĂ„JHU[ HJOPL]LTLU[ [OH[ KLTVUZ[YH[LZ V\Y Ă„YTÂťZ L_JLSSLUJL š 4LTILYZ VM [OL +LSVP[[L UL[^VYR ^VU 0;9 tax awards, more than any other organisation.

THE END OF BINARY OPTIONS?

O

ne of the big talking points at last month’s iFX EXPO in Limassol was the statement by CySEC Chairwoman Demetra Kalogerou that the Commission is considering banning binary options and is at the consulting stage. Over the past `LHY *`:,* HUK V[OLY ÄUHUJPHS YLN\SHtors have toughened laws governing the Forex and binary options industries in response to the numerous claims of fraud by aggrieved clients, especially in the binary options sector. Belgium and France have already banned all over-the-counter THYRL[Z PUJS\KPUN -VYL_ ^OPSL ;OL 5L[Oerlands has banned all forms of advertising for binary options and Forex. Israel has prepared draft legislation that will see binary options completely banned.

APPOINTMENTS

“HOPE FOR CHILDRENâ€? CRC POLICY CENTER WINS 2017 NATIONAL ENERGY GLOBE AWARD ;OL ¸/VWL -VY *OPSKYLUš *9* 7VSPJ` *LU[LY PU Cyprus has won the 2017 Energy Globe Award for its contribution to environmental protection in its “Homes For Hopeâ€? thanks to its use of ZVSHY LULYN` [V Z\WWS` LSLJ[YPJP[` ;OL WYVQLJ[ ^HZ M\UKLK I` ;V[HS , 7 *`WY\Z ) = HZ WHY[ VM its corporate social responsibility programme. Beyond the installation of solar panels, “Homes For Hopeâ€? recycle paper plastic, glass, cooking oil etc. Every year, under the patronage of UNESCO, Energy Globe honours organisations in 178 countries around the world.

BLUE FLAG AWARD FOR LIMASSOL MARINA

COSTAS ARGYRIDES

Costas Argyrides is to be the new CEO of cdbbank, following the departure of Kyriacos Papadopoulos. Argyrides previously worked at Bank of Cyprus as Director, Wealth, Brokerage & Asset Management.

LAURA CONSTANTINOU

Laura Constantinou has been hired by payroll solutions leader Fairfax Yeaman to support clients and contractors that are seeking to outsource their payroll requirements in Cyprus, Malta and internationally.

8 | GOLD | The Business Magazine of Cyprus

KALLIOPE AGAPIOU JOSEPHIDES

Kalliope Agapiou Josephides is the new Chairwoman of the European Institute for .LUKLY ,X\HSP[` ,0., :OL is a former Vice-President of the European Inter-University Centre for Human Rights and Democratisation.

Limassol Marina has achieved ‘Blue Flag Marina’ status in recognition of its commitment to environmental awareness and WYV[LJ[PVU HUK PZ [OL Ă„YZ[ 4HYPUH PU *`WY\Z [V YLJLP]L [OPZ PU[LYUH[PVUHS H^HYK ;OL )S\L Flag Marina programme is a highly-regarded and world-renowned accolade for environmental education, information and management, promoting and implementing safety regulations and procedures for the protection n VM [OL LU]PYVUTLU[ HUK ^H[LY X\HSP[` ;OL award was accepted by the CEO of Limassoll Marina, Andreas Christodoulides, during a Blue Flag Award Ceremony on June 9, at which this year’s 63 Blue Flag Beaches were also honoured.

ELECTORAL LAW

A

Solidarity Problem

ttorney-General Costas Clerides has said that the state faces a serious legal predicament, following a Supreme Court decision that upheld an appeal against a parliamentary seat belonging to the Solidarity Movement. The court annulled the election of Solidarity MP George Papadopoulos in Limassol following a successful appeal by former DISY MP Andreas Michaelides, after Solidarity Movement leader Eleni Theocharous won the seat but did not take it up, choosing to keep her seat in the European Parliament instead. The seat was granted to the party’s runner up Papadopoulos, who received only 767 votes. Michaelides had argued that a by-election should have been held instead of granting the seat to the runner up. The AttorneyGeneral has acknowledged that the law is lacking on what to do in such a case.

BANKING N NG

Compulsory voting to go

T

he Council of Ministers has approved a bill abolishing compulsory voting in elections, putting an end to a law that has been ignored for years. The bill must be approved by parliament. Interior Minister Constantinos Petrides said that it aims at harmonising national legislation with that of other EU member states that do not criminalise voter abstention. “The law has been inactive for many years, as it is not the intention of the state to prosecute citizens because they do not exercise this right, which must be a right and not an obligation,â€? Petrides said. According to the existing law, voting is obligatory and failure to do so is an offence. If convicted, offenders are subject to a â‚Ź340 fine. However, there have been no prosecutions for almost two decades.

CYPRUS EARNS â‚Ź4 BILLION FROM ITS ‘GOLDEN VISA’ SCHEME

25% of Cooperative shares to borrowers he Council of Ministers has decided to allocate 25% of stateowned shares in Co-operatives to depositors and regular Cooperative customers. According to Finance Minister Harris Georgiades, 350,000 people will ILULĂ„[ ;OL TPUPT\T KLWVZP[ VY JYLKP[ MHJPSP[` MVY ILULĂ„JPHYPLZ PZ Ă HZ VM March 31, 2017.

;

Georghadji: 10 Years to resolve NPL problem

G INVESTMENT

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iven the current rate of economic growth, it will take up to 10 years to substantially reduce Cypriot banks’ non-performing loans, according to Central Bank Governor Chrystalla .LVYNOHKQP :OL ISHTLK [OL WYVISLT VU the “bad banking practices of the past, UV[ [OL NSVIHS Ă„UHUJPHS JYPZPZš

24,989 THE NUMBER OF VOTES FOR UK CYPRIOT BAMBOS CHARALAMBOUS, 49, WHO WON A SEAT IN THE HOUSE OF COMMONS AS LABOUR MP FOR THE NORTH LONDON CONSTITUENCY OF ENFIELD SOUTHGATE ON JUNE 8. HE IS THE FIRST CYPRIOT MP IN LONDON AND ONLY THE SECOND-EVER TO BE ELECTED TO PARLIAMENT.

www.goldnews.com.cy | GOLD | 9

BUSINESS BRIEFING CULTURE

NEW €75 MILLION ARCHAEOLOGICAL MUSEUM ;OL ^PUUPUN WYVWVZHS MVY [OL UL^ HYJOHLVSVNPJHS T\ZL\T PU 5PJVZPH HPTZ [V LUJVTWHZZ [OYLL main elements of Cyprus’ history – the prehistoric era, the island’s timeless relationship with the sea, and the ancient city kingdoms. >VYR VU [OL UL^ Á TPSSPVU T\ZL\T [V IL I\PS[ VWWVZP[L [OL /V\ZL VM 9LWYLZLU[H[P]LZ VU [OL ZP[L VM [OL VSK 5PJVZPH .LULYHS /VZWP[HS PZ K\L [V ILNPU UL_[ `LHY ;OL *`WY\Z 4\ZL\T OHZ ILLU H[ P[Z J\YYLU[ SVJH[PVU ZPUJL ;OL JVTWL[P[PVU [V KLZPNU [OL UL^ T\ZL\T ^HZ ^VU I` .YLLR HYJOP[LJ[ ;OLVUP ?HU[OP ^OV ZHPK [OH[ ZOL HUK OLY [LHT OHK come up with “a modern and innovative building that will become a landmark for Nicosia and Cyprus.”

CYPRUS TO ESTABLISH ACADEMY OF SCIENCE, ARTS & LETTERS ;OL *V\UJPS VM 4PUPZ[LYZ OHZ HWWYV]LK H IPSS WYVWVZPUN [OL LZ[HISPZOTLU[ VM H *`WY\Z (JHKLT` of Science, Arts & Letters, meaning the country will now be able to participate in important interUH[PVUHS ZJPLU[PÄJ HUK J\S[\YHS L]LU[Z *`WY\Z PZ VUL VM [OL ML^ ,\YVWLHU JV\U[YPLZ [OH[ KVLZ UV[ have such an organisation. ;OL MV\UKPUN JVTTP[[LL VM [OL (JHKLT` PUJS\KLZ 5VILS 3H\YLH[L :PY *OYPZ[VWOLY 7PZZHYPKLZ physicist Loucas G. Christophorou, chemist Kyriacos Nicolaou and archaeologist Vassos Karageorghis. ;OL HJHKLT` ^PSS IL TVKLSSLK VU V[OLY ,\YVWLHU HUK PU[LYUH[PVUHS HJHKLTPLZ HUK P[Z VIQLJ[P]LZ include the international promotion of the work of Cypriot scientists and the development of reZLHYJO HUK PUUV]H[PVU PU *`WY\Z ;OL IPSS ^PSS UV^ IL Z\ITP[[LK [V [OL /V\ZL VM 9LWYLZLU[H[P]LZ

STELIOS HAJI-IOANNOU

PEOPLE

easyJet Founder Stelios Haji-Ioannou has signed The Giving Pledge, founded in 2010 by Bill and Melinda Gates and Warren Buffett, designed to help address society’s most pressing problems by encouraging the wealthiest individuals and families to give the majority of their wealth to philanthropic causes. Haji-Ioannou has his own philanthropic foundation, managing charitable projects mainly in the UK, Greece, Cyprus and Monaco where he now lives.

IRENA GEORGIADES

A

t last month’s Annual General Meeting of Hellenic Bank shareholders, Chairwoman Irena Georgiades stated that she does not wish to be re-appointed to the post. She will, however, remain a member of the Board. Georgiades later said that she wishes to pursue new professional challenges. Until a replacement in selected, Senior Independent Director Dr Evripides Polykarpou will carry out the duties of Chairman of the Board.

10 | GOLD | The Business Magazine of Cyprus

POLITICS

AKEL PROPOSES SPANOS FOR PRESIDENT

L

imassol-born businessman Mike Spanos is the presidential candidate who will have the backing of opposition party AKEL. Spanos is a former CEO of Coca-Cola Cyprus and the founder of Green Dot Cyprus. His candidacy will be put to party members in July.

PAFILIA INVESTS €30 MILLION MORE IN MINTHIS HILLS DEVELOPMENT

P

REAL ESTATE

HÄSPH 7YVWLY[` +L]LSVWLYZ OHZ HUUV\UJLK [OH[ P[ OHZ YLHJOLK [OL ÄUHS Z[HNL of development to the infrastructure and facilities at its luxury residential reZVY[ 4PU[OPZ /PSSZ ;OL Á TPSSPVU PU]LZ[TLU[ ^PSS Z[HY[ PU [OL H\[\TU HUK [OL YLZVY[»Z MHJPSP[PLZ ^PSS IL JVTWSL[LK ^P[OPU [^V `LHYZ ;OL` PUJS\KL H \UPX\L Wellness Centre with an indoor/outdoor concept providing a fresh approach and hoSPZ[PJ L_WLYPLUJL ;OL >LSSULZZ *LU[YL PZ SVJH[LK PU H ZLJS\KLK `L[ JVU]LUPLU[ SVJH[PVU on the hillside, within walking distance of the new village square, featuring a selection of restaurants, cafes, galleries and shops around a central courtyard. In addition, a further range of sports facilities are being developed including an outdoor gym, equestrian centre, tennis courts, mountain bike/hiking paths and indoor sports ground. 7HÄSPH OHZ HSYLHK` PU]LZ[LK H [V[HS VM Á TPSSPVU PU 4PU[OPZ /PSSZ

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