Cyprus pushes for EU support over shipping industry sanctions impact

NICOSIA : Cyprus is speaking to other European Union member states to shore up support for the shipping industry hit by sanctions on Russia, the country’s Shipping Minister Vassilios Demetriades has revealed.

Cyprus has the third-largest shipping fleet in the EU after Malta and Greece. It has seen defections, or de-flagging, of about a fifth of its oil tanker fleet in recent months, connected one way or another to sanctions on Russia.

Cyprus had approached Brussels with a series of proposals for consideration as Brussels has undertaken to consider supportive measures for the industry this month to counterbalance the impact of an oil price cap on Russian crude shipments.

Now the country has stepped up its efforts to get its proposals considered.

Demetriades, who prior to becoming Shipping Minister served as a Policy Officer in the Directorate General of Mobility and Transport of the European Commission told that Cyprus’ proposals include automatic extensions of tonnage tax systems – which come under EU state aid rules – as well as tonnage tax discounts for fleets with European and Ukrainian seafarers, and better terms for EU operators in third jurisdictions. Tonnage tax is subject to reviews by Brussels.

Brussels has undertaken to consider supportive measures for the industry by this month to counterbalance the impact of an oil price cap on Russian crude shipments.

“We have not received a negative answer, but an answer that shows that the commission is not ready, at this stage, to take measures,” Demetriades told.

“We don’t pretend to know everything, but if a sector is challenged you expect to dedicate resources and think what measures should be brought to counterbalance negative consequences,” he said.

Demetriades, who is expected to leave office at the end of this month following a general election, said he would advise his successor to deal with the matter as a priority.

He did not to criticise Brussels, saying: “I believe we are also responsible to better communicate this need, and that’s why we have turned to other member states to share our concerns and make our voice stronger.