CYPRUS SHIPPING
Cyprus registry sails through Covid shoals productive sectors of the Cyprus Economy with a steady 7% of GDP (around € 1.2 billion) and the longest-running source of foreign exchange inflows from abroad, without any government investment in it.
The Cyprus shipping industry, and the Cyprus Registry in particular, has negotiated the global Covid-19 pandemic remarkably well, says CSC Director-General Thomas Kazakos. The sector’s health also supported other national sectors, which bodes well for the future. Turkish political intransigence, however, remains a so-far insoluble problem. What is the state of the Cypriot economy at present? How much was it affected by the Covid-19 crisis? Cyprus had the advantage of having built a very strong economy when it entered the Covid-19 crisis and with the prompt Government supportive actions towards Shipping and businesses in general, it managed to contain as much as possible the economic impact and at the same time the spread of the pandemic to a bearable extent. Cyprus Shipping played an important role in supporting the economy, as it continued operating despite the lockdowns and operational challenges and therefore it acted as a very reliable “blood donor” for the Cyprus Economy during this crisis. The Shipping Industry is known to be among the most important and 14 SHIPPING SEPTEMBER 2021
How did the Cypriot state handle the crisis in the shipping sector? What actions did it undertake to support the ship registry? Did it participate in the repatriation and vaccination of crew members? The Cyprus Government and all the relevant State authorities, as well as the medical staff and the scientists have done overall an excellent work in stemming the pandemic. The Government, through the Shipping Ministry, substantially assisted in maintaining the Shipping Industry’s leadership throughout the pandemic crisis by facilitating early in the pandemic crew changes and repatriation of seafarers, whilst other governments maintained restrictive measures and later by including the whole Cyprus Shipping Sector in the very limited list of “Essential Services” following the Chamber’s request on same. Another supportive measure by the Shipping Ministry for Shipping companies and owners of Cyprus ships, was the extension of the deadline for payment of the Tonnage Tax and the Cyprus Registry Maintenance Annual Fee for the year 2020. Cyprus Shipping Ministry again prioritised seafarers’ wellbeing during the vaccination rollout by proposing a global approach to delivering COVID-19 vaccinations to seafarers, which was later adopted by the by the International Labour Organisation (ILO). At local level, the Shipping Ministry stepped up again and provided COVID-19 vaccinations to all seafarers on Cyprus-flagged and Cyprus-managed vessels. What is the state of the Cyprus registry today compared with the pre-Covid-19 period? In the aftermath of the pandemic and financial challenges it caused to the Industry, the Shipping operational and taxation infrastructure in Cyprus and the Cyprus flag remained intact and very competitive. It is most gratifying to see that Cyprus flag users remain loyal, supporting at the same time, the efforts to safeguard Cyprus Shipping in order to continue its significant contribution to the Cyprus Economy. An important factor, which ensured the viability of the Cyprus Register during this crisis, was the official approval by the European Commission of the upgraded Cyprus Shipping Taxation System, on December 2019 as well as the approval of the relative Bill for Shipping Taxation System unanimously by the Plenary of the House of Representatives in April 2020. Nevertheless, Cyprus Shipping can become even more competitive and attractive to new Shipping companies with the
