Cyprus’ Deputy Ministry of Shipping presented a slightly surplus budget for 2026, with expenditures set at €18.7 million and projected revenues of €20.3 million, during a session of the Parliamentary Finance Committee at the end of October.  

At the same time, Director General Stelios Chimonas told MPs that the Cyprus registry has grown by around 20 per cent since September 2023, while the number of companies under the Tonnage Tax System rose by 4.5 per cent.

The 4 per cent rise in revenues compared with the 2025 budget, he said, reflects the effectiveness of strategies implemented to strengthen Cypriot shipping.

According to the Annual Action Plan for 2026, the Deputy Ministry employs 155 people, including 94 women and 61 men, operates three administrative directorates, six overseas shipping offices, and 29 departments and services.

Its mission is the sustainable development of Cyprus as a maritime state, reinforcing both the economy and the Republic’s international standing.  

Its vision, meanwhile, is for Cyprus to become a key and influential player in shaping global maritime policy, a modern, sustainable and competitive shipping centre committed to excellence.

The plan outlines the ministry’s core responsibilities, ranging from modernising shipping legislation and promoting investments to maritime education, environmental protection and the implementation of the international shipping strategy.

It also covers the execution of Cyprus’ duties as flag, port and coastal state, the management of the Tonnage Tax System, and the promotion of cruise tourism and maritime connectivity with other countries.

In practical terms, its priorities for 2026 are structured around three strategic pillars: strengthening the competitiveness and quality of the Cyprus registry, developing the national maritime ecosystem, and enhancing operational efficiency through digital transformation and improved staffing.

The overall framework represents a combined investment of nearly €9.9m, with €2.61m allocated to the registry, €6.05m to the maritime ecosystem and €1.2m to administrative and digital upgrades.

The plan also highlights resilience as a guiding principle, as Cyprus continues to navigate geopolitical instability, EU sanctions on Russia, the ongoing Turkish embargo, environmental pressures and rapid technological change.

Despite these headwinds, Chimonas told MPs that the registry’s performance and reputation continue to strengthen.

He said that losses from the withdrawal of Russian-linked vessels have already been offset and the registry remains robust.

In response to Akel MP Christos Christofides, he confirmed that the damage caused to the Cypriot registry by the withdrawal of ships, mainly tankers, after the imposition of EU sanctions on Russia has been repaired to date.

As for the Turkish embargo, he explained that the cost cannot be precisely calculated as it represents “lost profits,” adding that companies cooperating with Turkish ports are effectively prevented from registering under the Cypriot flag.

He went on to explain that the ministry now focuses on shipowners and shipyards with no activity in Turkish ports, presenting the advantages of the Cyprus flag and maintaining personal contact with companies.

“These actions have paid off and have reduced the impacts,” he said. The plan also includes funds for the international promotion of the flag and participation in EU and global maritime fora, with Cyprus maintaining its annual contributions to the International Maritime Organisation (IMO) and covering representation expenses to ensure the country remains visible and influential.

Citing Central Bank of Cyprus (CBC) data, Chimonas noted that ship management contributes around 5.5 per cent to Cyprus’ Gross National Product and remains on an upward trend. He added that the sector generates revenues of €13.4m, against expenses of €6m, confirming Cyprus as the EU’s largest ship management centre.

The Deputy Ministry is focusing on further developing cruise tourism and attracting mega-yachts to Cyprus.

Responding to a question by Committee chair and Diko MP Christiana Erotokritou, Chimonas said that attracting mega-yachts may require new legislation similar to the bill already submitted concerning small vessels.  

He also expressed hope for the continued operation of the Cyprus–Greece ferry link, noting that the company’s agreement has been extended until 2027.  

When asked by Akel MP Costas Costas about expanding routes, he said a new company has expressed interest in establishing a connection with Lebanon and that the ministry is supporting its efforts.

At the same time, the development of the maritime ecosystem remains a key objective. This strand of the plan covers actions promoting sea connectivity, safety, gender equality and education.

The continuation of the Cyprus–Greece ferry link until 2027 is secured with an annual subsidy of €5.475m, while new sea routes with Lebanon and other neighbouring countries are being explored.  

The ministry is also preparing a Cyprus National Cruise Tourism Policy in cooperation with the Presidency, the Ministry of Energy and the Deputy Ministry of Tourism. 

The plan foresees the strengthening of safety standards for coastal and recreational vessels and improved pollution-response capacity in coordination with the Limassol Municipality, the Marine Police, the Fisheries Department and the Environment Department.

It also outlines the full operation of the One Stop Shipping Centre, which began in November 2023, and measures relating to marine spatial planning and blue-economy development.  

To support maritime education, €400,000 is allocated for onboard training, €45,000 for student scholarships and €40,000 for women pursuing postgraduate studies in maritime subjects, while €15,000 has been reserved for gender-equality initiatives across the sector. 

However, staffing remains a major obstacle. Around 35 per cent of positions are still vacant, including directors, senior inspectors and maritime traffic controllers.

Responding to Edek MP Elias Myrianthous, Chimonas acknowledged that the lack of inspectors has created difficulties but said the ministry relies on independent inspectors to meet needs until the positions are filled, hopefully by the end of 2026.  

The plan confirms that staffing shortages are currently being covered by independent inspectors, while recruitment through the Public Service Commission continues. 

He also pointed to the high cost of renewing leases in Limassol, saying procedures have begun for constructing a new building to house the Deputy Ministry’s offices.

According to the plan, the site allocation was approved in August 2023, the architectural study was completed in June 2024, the environmental study is expected by mid-2025, and the project documentation has already been submitted to the Directorate General for Growth. 

Meanwhile, the ministry’s digital transformation, funded through the Recovery and Resilience Mechanism, is progressing steadily.

The main IT contract was signed in August 2022, and full implementation is expected in the first quarter of 2026. The €240,000 project covers infrastructure, hosting and online upgrades to provide seamless digital services for shipowners and seafarers.  

Training and certification are also included, with €100,000 reserved for staff education and €6,000 for ISO quality-management certification. The continued operation of the 61 overseas shipping offices is budgeted at €790,000, with an additional €100,000 for related studies. 

Disy MP Savia Orphanidou raised the issue of the green transition. Chimonas said relevant European legislation is already being implemented, with tax deductions of up to 30 per cent offered as incentives for companies showing strong decarbonisation performance.

The plan frames this under the “Climate Change – Green Transformation” axis, aligning national action with both EU and IMO environmental objectives. 

On digitalisation, Akel MP Valentinos Fakondis stressed the need for systems that genuinely simplify processes rather than merely digitising bureaucracy.

Chimonas said the registry and seafarer services are already being digitalised and that tax services will follow, reducing the workload in shipping offices. The plan confirms that all core services will be fully digital by mid-2026, under Cyprus’ Recovery and Resilience Facility.

In a written statement after the session, Fakondis called for a “substantial action plan, with diplomatic initiatives and targeted support measures” to counter the Turkish embargo, alongside a new framework to support shipping companies affected by EU sanctions.

He also pointed to the ministry’s understaffing, the need for reorganisation, and the delays in relocating to a single building.  

He welcomed the success of the Cyprus–Greece ferry connection but urged its expansion to other neighbouring countries, while also emphasising the importance of maritime education, an area which, according to the ministry’s plan, includes new scholarships and training incentives for young seafarers and women in maritime professions.

Meanwhile, Dipa MP Marinos Mousiouttas expressed support for the ministry’s strategy and satisfaction with the registry’s 20 per cent growth.

He also welcomed the ongoing ferry connection and the development of a National Strategy for Cruise Tourism.

“It is clear that we should support the shipping sector, facilitate companies through initiatives like the One Stop Shipping Centre, and build on the strong foundations that already exist,” Mousiouttas concluded.