An increase of 20% was recorded in the Cypriot registry from September 2023, the General Director of the Deputy Ministry of Shipping, Stelios Chimonas, said before the Parliamentary Finance Committee, during the presentation of the annual budget of the Deputy Ministry for 2026.
Mr. Chimonas also mentioned that there was an increase in the number of companies in the Capacity Tax System, where 4.5% more companies have registered.
He also noted that the budget for 2026 is slightly surplus, with expenses at 18.7 million euros and expected revenues at 20.3 million euros, underlining that the 4% increase in revenues, in relation to the 2025 budget, demonstrates the effectiveness of strategies implemented by the Deputy Ministry for the development of the Cypriot shipping sector.
The aim of the actions and projects planned for 2026, according to Mr. Himonas, is to strengthen shipping and improve the special weight of Cyprus in international fora. He pointed out that despite the consequences of the sanctions imposed on Russia by the EU due to the war in Ukraine and despite the obstacles created by the Turkish embargo on ships flying the Cypriot flag, the competitiveness of Cypriot shipping and the influence of the registry internationally are being strengthened.
Besides, in response to a question from AKEL Member of Parliament, Christos Christofides, he explained that the damage caused to the Cypriot registry by the departure of ships - mainly tankers - after the imposition of sanctions by the EU on Russia, has been restored to date.
Asked about the cost of the embargo imposed by Turkey, Mr. Chimonas explained that it cannot be accurately calculated, as it is essentially lost profits. He said, however, that the Deputy Ministry has an image that companies that would be interested in registering their ships in the Cypriot registry, cannot do so, as they have cooperation with Turkish ports.
He added that, as part of the actions to develop the Cypriot registry, the Deputy Ministry identifies the ships that do not have activities in Turkish ports and focuses there to present the advantages of the Cypriot registry, while companies that build ships are also approached and personal contacts are made for the same purpose. "These actions have paid off and have reduced the effects," said Mr. Himonas.
The contribution of neo-management to the Gross National Product (GDP), according to data from the Central Bank quoted by Mr. Chimonas, amounts to 5.5%, while he pointed out that it shows an increasing trend. He added that Cyprus is the largest neo-management center in the EU, which brings the country revenues of 13.4 million, while the expenses required are 6 million.
For further development, the Deputy Ministry looks forward, among other things, to the promotion of the strategy it implements to highlight Cyprus as a cruise destination, as well as to create the conditions for attracting and hosting mega-yachts.
Besides, in response to a question from the President of the Committee and Member of Parliament of DIKO, Christianas Erotokritou, regarding the actions that could contribute to the implementation of the objectives of the Deputy Ministry, Mr. Heimonas mentioned the example of the attempt to attract mega-yachts, as something that may also require regulations concerning the parliament, corresponding to the bill that concerns small boats and which has already been presented.
At the same time, he said that he wishes for the continuation of the Cyprus-Greece ferry connection, noting that the agreement of the company that operates the routes has been extended until 2027. Furthermore, in response to a question from AKEL MP, Kosta Kosta, on whether the ferry connection with other destinations is also being considered, Mr. Chimonas stated that a company has expressed interest in a connection with Lebanon. In particular, he said that this is a new company and that the Ministry is helping to realize this goal, which is however left to the planning of the company itself.
As one of the weaknesses of the Deputy Ministry, Mr. Chimonas pointed out the vacancies, which are approximately 35% of the organic positions of the Deputy Ministry. Among them, there are also positions of managers, three positions of senior inspectors, 14 positions of inspectors, as well as two positions of marine traffic controllers.
Responding to a question from EDEK Member of Parliament, Ilias Myrianthous, about whether there are difficulties in ship inspections, due to the vacant positions of inspectors, Mr. Chimonas replied that there are difficulties and that an effort is being made to meet the needs through the network of independent inspectors with which the Deputy Ministry cooperates. He noted, however, that all vacant positions are in the EDY and expressed the hope that they will be filled by the end of 2026.
A major difficulty, according to Mr. Himonas, is the renewal of the rents in the buildings used by the services of the Deputy Ministry in Limassol, due to very high prices in the rental market in the city. Answering a question from AKEL Member of Parliament, Kosta Kosta, he said that procedures have begun for the construction of a building that will house the Deputy Ministry.
DISY Member of Parliament, Savia Oranidou, raised with Mr. Heimonas the issue of the implementation of the green transition in the shipping sector. Mr. Chimonas explained that the European legislations are applied in this direction, while he noted that there is a direction for actions related to decarbonization. He also noted that a tax discount of up to 30% is offered as an incentive to the companies with the highest performance in this effort.
AKEL Member of Parliament, Valentinos Fakontis, raised the issue of promoting the digitization of procedures, in a way that the bureaucracy is not simply transferred to a digital form. Mr. Chimonas assured that the digitization is done for convenience purposes and mentioned that it is already applied to the services for seafarers and that the tax services will follow, while the register is also fully digitized. He explained that this will allow the amount of work in shipping offices to be reduced.
In his written statement after the meeting, Mr. Fakontis pointed out the need for a "substantial plan of action, with diplomatic initiatives and targeted support measures" to deal with the effects of Turkey's embargo, while he called for a "new framework of diversification and support for shipping companies" to recover from EU sanctions against Russia.
He also highlighted as serious issues the understaffing of the Deputy Ministry, the need to reorganize its structure, as well as the postponement of its relocation to a single, functional building.
Regarding the ferry connection, he pointed out that it has been successful and added that it is necessary to expand it with Greece, but also with other neighboring countries. He also underlined the importance of maritime education.
The MP of DIPA, Marinos Mousioutas, in his statements after the meeting, expressed the support of the faction in the actions of the Deputy Ministry to achieve its strategic goals. He also expressed satisfaction with the fact that the Cypriot registry "has increased by 20% and that it continues to evolve, develop continuously and remain competitive".
He also welcomed the continuation of the maritime connection between Cyprus and Greece, as well as the preparation of the National Strategy for cruise tourism in Cyprus. "It is clear that we should support the shipping sector, facilitate the shipping companies in various ways, for example with the operation of the One Stop Shipping Center and develop the shipping sector even more, because there are all the conditions for further development," he concluded.
