House commerce committee wants EU help for sanctions-hit businesses

Cyprus must assert itself with a strong voice to the EU in a bid to mitigate the effects of sanctions to businesses on the island, chairman of the House commerce committee Kyriacos Hadjiyiannis charged on Tuesday.

During a session held behind closed doors, MPs discussed the “clumsy way” Cyprus has handled the economy at times, and the impact of sanctions which have affected strategic sectors such as tourism, shipping and services.

The sanctions on Cypriot individuals were from the US and UK – not the EU.

“The EU has offered possibilities to states to prepare support programmes for these businesses, many of which are being driven to bankruptcy or liquidation problems,” Hadjiyiannis said.

It was not immediately clear what support he was alluding to, as the aim of sanctions is to punish individuals and entities deemed as financial enablers for Russian oligarchs, and thus supporting Russia’s war on Ukraine.

“We must in some way, manage these companies. We don’t want to them to close because if they leave the market, they’re gone forever. If they fire people, we’ll have huge numbers of unemployed persons.”

He also added companies are leaving government-controlled areas and heading to the north, so they have no risk of getting hit by sanctions.

“We have to look at the consequences of the sanctions holistically and the state must speak out assertively to the EU. Imposing sanctions for political reasons is absolutely respectful, but the consequences should also be shared by the state itself.”