Cyprus Business Now: energy, PwC, car market, R&D, CySEC, GSI, shipping, Keo

Business & economy wrap-up from the day beforeCyprus must adopt a balanced and long-term energy strategy combining conventional power generation, renewable energy, storage, electricity interconnection and demand management, energy systems expert and former Cyprus Energy Regulatory Authority (CERA) chairman Andreas Poullikkas has warned. In an analysis on energy security, Poullikkas said there are no simple solutions to complex energy challenges, arguing that Cyprus’ electricity system requires a comprehensive approach rather than reliance on individual technologies. “Electricity adequacy is one of the most important conditions for economic stability, social cohesion and quality of life in Cyprus,” Poullikkas said. He said the experience of recent years had clearly demonstrated that the island’s electricity system faces growing challenges, particularly during periods of high demand and extreme temperatures. According to Poullikkas, Cyprus’ position as a small and electrically isolated island means that security of supply cannot depend on one-dimensional choices. Cyprus allocated approximately €112 million to research and development (R&D) in 2025, almost doubling government funding over the past decade despite a decline from the previous year, according to figures published by Eurostat on Friday. Specifically, the European statistical office reported that government budget allocations for R&D (GBARD) in Cyprus stood at €111.99m in 2025, down from €150.61m in 2024. Despite the year-on-year decline of 25.64 per cent, Cyprus’ R&D funding remained 87.74 per cent higher than in 2015, when government allocations amounted to €59.66m. The long-term increase reflects Cyprus’ stronger economic performance in recent years, allowing greater investment in research and innovation compared with the more restrained public finances that characterised the years immediately following the financial crisis. The figures also show that R&D funding has broadly followed an upward trend over the past decade, rising from €59.79m in 2016 and €62.47m in 2017 to €67.08m in 2018, before reaching €80.44m in 2019. The Cyprus Securities and Exchange Commission (CySEC) announced on Friday that it has imposed administrative fines on 12 listed companies for breaching transparency rules relating to the publication of their annual financial reports for 2024. The regulator said the sanctions were decided by its board during a meeting held on June 8, 2026, with the announcement published on August 7, 2026. The fines were imposed under the Transparency Requirements (Securities Admitted to Trading on a Regulated Market) Law of 2007, as amended. According to CySEC, the penalties relate to violations of section 9(1) of the legislation, which concerns the publication of annual financial reports, while several companies were also found to have breached section 37(2)(a) of the same law. European Union exports of alcoholic beer to non-EU countries fell by 11 per cent in 2025, according to a report released by Eurostat on Friday. The release of the statistical figures coincided with International Beer Day, which is celebrated annually on the first Friday of August. Total extra-EU shipments reached 3.2 billion litres of beer containing alcohol during 2025, down from the previous year’s levels. In terms of local performance, Cyprus recorded beer exports valued at €2,329,341 over the course of 2025, according to Eurostat. The island shipped a total weight of 2,699.50 tonnes of beer to international buyers during the same period. PwC Cyprus chief executive Andreas Yiasemides has been appointed chairman of the council of the University of Cyprus for a three-year term. The appointment was made by the Cabinet and subsequently ratified by the University Senate. Yiasemides described the appointment as a significant responsibility, emphasising the importance of higher education to Cyprus’ future. “It is a great honour for me to have been appointed by the council of ministers of the Republic of Cyprus to serve as chairman of the council of the University of Cyprus, an appointment that was subsequently ratified by the University Senate,” he said. “I take on this responsibility with humility, commitment and a genuine desire to support the University’s continued progress,” Yiasemides added. Both the European Commission and former energy minister George Papanastasiou found themselves at odds with incumbent Energy Minister Michael Damianos on Friday over Damianos’ claim that the planned Great Sea Interconnector project may increase consumer energy prices. Damianos had told CyBC radio that “the implementation of the electrical interconnection between Cyprus and Crete will mean significant electricity for Cyprus, but this does not necessarily mean that the price of electricity will also decrease – it may increase”. In response, a European Commission spokesperson told the Cyprus Mail that “boosting electricity interconnections helps bring down energy prices by allowing the integration of more renewables in the system”. “Better and improved interconnectivity is essential in the EU, in order to bring down energy prices for our citizens and industry, and to secure our independence,” the spokesperson said. The ferry connection between Cyprus and Greece cannot continue without renewed state subsidies, contract operator Scandro Holding Ltd’s chief executive Charalambos Manoli said on Friday. Speaking to the Cyprus News Agency, Manoli said the long-term goal of creating a financially self-sustaining ferry service had yet to be achieved. The ferry route was launched in 2022 after the European Commission gave the go ahead for a three-year state subsidy, which was later renewed for a further three years. Manoli said 2027 could be the service’s final year unless passenger numbers improve. “There is not such a big demand, as in Greece, where people use the ships to travel between islands,” he explained. The ferry runs from the end of May till early September. Michalis Kammas has pledged that he and the board of the newly established Cyprus Business Development Organisation will “do everything we can” to achieve the government’s objectives, following his appointment as chairperson by the cabinet this week. Speaking to the Cyprus News Agency (CNA) shortly after the announcement, Kammas welcomed the decision and thanked the government for entrusting him with the leadership of the new body. “I thank both the Minister of Finance and the President of the Republic and the Council of Ministers for the honor they did me by appointing me president of the organisation,” Kammas said. Turning to the work ahead, he stressed that the board was ready to contribute fully to bringing the organisation into operation and delivering the goals behind its creation. “As a board of directors,” Kammas noted, “we will do everything we can to achieve the goals that the government has set with the creation of this organisation.” The Cyprus Chamber of Commerce and Industry (Keve) will host a business forum and business-to-business meetings with a Palestinian business delegation in Nicosia on September 10, 2026, aiming to strengthen commercial ties and create new partnership opportunities between companies from the two sides. The event is being organised in cooperation with the Jenin Chamber of Commerce and Industry and the Embassy of the State of Palestine in Cyprus, and will take place at Keve’s headquarters in Nicosia. According to the chamber, the forum is intended to strengthen bilateral cooperation between Cyprus and Palestine while encouraging business partnerships between companies and institutions from both countries. The initiative will focus on a number of sectors, including agriculture and food processing, franchising, information technology and digital solutions, the leather industry, furniture and home furnishings, and textiles, apparel and fashion. Used vehicles drove a strong increase in Cyprus’ motor market during the first seven months of 2026, while registrations of new vehicles continued to decline, according to figures released by the statistical service (Cystat) on Friday. A total of 34,787 motor vehicles were registered between January and July, marking an 11.5 per cent increase compared with 31,200 during the same period last year. The gap between new and used vehicles was particularly striking. Used registrations climbed by 24.1 per cent, from 17,144 to 21,270, while registrations of new vehicles fell by 3.8 per cent to 13,517, from 14,056. The same pattern was recorded in July, when overall registrations rose by 3.3 per cent to 5,420, compared with 5,246 in July 2025. However, new registrations during the month fell by 3.4 per cent to 2,076, while used vehicles increased by 8 per cent to 3,344. Beverage company Keo plc on Friday announced that technical issues with its dividend calculation software may cause a delay in distributing its approved dividend to shareholders. The announcement follows the decision made at the company’s annual general meeting on July 8, 2026, where shareholders approved a total dividend of €1.69 million. The approved payout, which amounts to 4 cents per fully paid share, is being funded from the company’s 2024 profits held within its revenue reserve. Company management confirmed that it is exerting every effort to resolve the technical issues and complete the dividend payout prior to the original deadline of August 17, 2026. Cyprus has been showcased in a new international video released by the International Social Security Association’s Construction Section (ISSA-C), highlighting examples from the island that promote workplace safety, health and accident prevention through the global Vision Zero strategy. According to the Cyprus Scientific and Technical Chamber (Etek), the video demonstrates how the implementation of the Vision Zero – Safety. Health. Wellbeing. campaign and its Seven Golden Rules can help prevent workplace accidents, improve occupational safety and health, and foster a strong culture of prevention. The chamber said the production combines examples from Cyprus with case studies from other countries to illustrate how the international strategy is being applied in practice. Particular emphasis is placed on the Cypriot examples, which highlight the campaign’s first Golden Rule, “Take leadership – demonstrate commitment” as the foundation for creating safer workplaces. The Cyprus Securities and Exchange Commission (CySEC) has announced that it will take part in a European-wide supervisory exercise examining the digital resilience of crypto asset service providers that offer custody services, with inspections set to begin in the second half of 2026. The initiative follows the launch of the 2026 Common Supervisory Action (CSA 2026) by the European Securities and Markets Authority (ESMA) in cooperation with national competent authorities across the European Union. According to a CySEC circular, the exercise will assess how well authorised crypto asset service providers (CASPs) have developed their digital operational resilience frameworks in relation to custody activities. The review will examine the risks associated with distributed ledger technology (DLT), the technology underpinning many crypto assets, while focusing on how firms protect digital assets and maintain secure operations. EmissionLink managing director Philippos Ioulianou has called for fairer treatment of shipping under the proposed expansion of the EU Emissions Trading System (EU ETS), warning against double charging and urging governments to reinvest more of the revenue in maritime decarbonisation. Under the European Commission’s proposals, the system would cover offshore activities from 2027, before expanding to certain vessels of between 400 and 5,000 gross tonnes from 2029. While the broader scope could support Europe’s climate objectives, Ioulianou said, “Expanding the EU ETS will not automatically make it more effective. The system must be coherent, proportionate and capable of delivering practical decarbonisation.” In particular, concerns have been raised about the possibility of shipping companies facing overlapping liabilities if the European system eventually operates alongside a carbon-pricing mechanism introduced by the International Maritime Organisation (IMO). Addressing that risk, Ioulianou added, “Shipping should not pay twice for the same tonne of emissions. If the EU ETS operates alongside a future IMO carbon-pricing mechanism, there must be an automatic and transparent way to recognise payments and reconcile liabilities.” The Central Bank of Cyprus (CBC) announced on Friday that it is accepting applications to fill two senior vacant positions within its workforce. Specifically, the financial institution is seeking qualified candidates to take up the role of Senior Communications Officer. Applications are also being invited for the position of Senior Officer at the Centre of Economic and Monetary History of Cyprus. Interested individuals must submit their applications using a dedicated automated tool that operates independently of the central bank’s main website. The deadline for all electronic submissions has been set for Sunday, September 6, 2026, at 23:59. The central bank confirmed that further details and comprehensive guidelines regarding the application process have been made available online. Demetra Holdings Plc repurchased 3,340 of its own shares at a price of €1.465 per share on August 6, 2026, according to an official announcement released by the company on Friday. The transaction was executed on the Cyprus Stock Exchange (CSE) through the Cyprus Investment & Securities Corporation Ltd (CISCO) acting as the purchaser. The move follows authorisation granted by the company’s shareholders during its annual general meeting held on June 30, 2026. The acquisition covered a total volume of 3,340 shares, with all equity purchased at the uniform price of €1.465 per share during the August 6 meeting.