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The Minister of Finance, Mr. Konstantinos Petridis, participated in the informal teleconference of the EU Council of Finance Ministers on the developments in Ukraine, which took place today, Wednesday, March 2, 2022. & nbsp; Mr. Petridis stressed the need for third countries to comply with the decisions for possible sanctions, stating that possible non-compliance with sanctions by EU candidate countries, such as Turkey, is unacceptable as it erodes the effectiveness of sanctions, while making gains to the detriment of European economies apply the sanctions.
The teleconference discussed the effects of sanctions on both the Russian and European economies. From the data so far, it is clear that the sanctions are a direct blow to the Russian economy. In the EU, the effects vary from country to country, with the main risks being rising inflation, and especially the prices of fuel and cereals that will hit European economies. Coordinated monitoring of developments and the investigation of ways of dealing with it were agreed.
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In his speech, among other things, the Minister of Finance stated that Cyprus stands in solidarity with Ukraine and supports its sovereignty, independence and territorial integrity vis-.-Vis its internationally recognized borders. We are strongly in favor of EU unity, he stressed, as it makes us stronger as seen from the first effects of sanctions, while expressing hope that they will soon bring about the desired change in Russia's behavior. Undoubtedly, he noted, these sanctions will have a negative impact on the economies of the Member States, which we must deal with.
The Minister, pointed out, that the decision to close the airspace of Cyprus for aircraft operated by Russian air carriers will negatively affect Russian tourist flows to Cyprus , which represent a significant percentage of annual tourist traffic.
In the financial sector, it is estimated that there will be no significant impact , given the minimal exposure of Cypriot banks to the Russian economy, as well as the fact that Russian deposits in Cyprus have decreased significantly in recent years. He also stated that Cyprus has no exposure to Russian government bonds or other investments in the Russian economy.
stating that possible non-compliance with sanctions by EU candidate countries, & nbsp; is unacceptable as it erodes the effectiveness of sanctions, while making profits at the expense of In conclusion, Mr. Petridis stated the decision of Cyprus to offer humanitarian aid to Ukraine and its readiness to receive a number of Ukrainians. of refugees.