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the international investment, finance & professional services magazine of cyprus

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ISSUE 33 DECEMBER 14 - JANUARY 13, 2014PRICE €4.95

PowERED BY:

SHIPPINGEuropeanPolicy outlook2014

PlUS: MoNEY / BUSINESSECoNoMYTAX & lEGAllIFESTYlE / oPINIoN

ECoNoMYNine months onCyprus stillsurprises

INTERVIEwSMichael leontiouAndreas ChristouAlexei Ryabov

+ RAKIS CHRISToFoRoU, CoNSTANTINE NIColAIDES, NIColAS THEoCHARIDES

4 Gold the international investment, finance & professional services magazine of cyprus

FEATURE

+ opinion

38 | “ThERE’s no MAgic solUTion” Those who have retained their wealth need to entrust its management to the experts, says Nicolas Theocharides.

44 | A policy oUTlook FoR EURopEAn shippingBy Patrick Verhoeven, Secretary General of the European Community Shipowners’ Associations (ECSA).

47 | spEciAl ADVERTising sUpplEMEnTStrategy Kazakhstan 2050: A new political course for Kazakhstan in a fast-changing world

66 | nATURAl cApiTAlCyprus possesses valuable assets that even the Troika cannot subject to a haircut

6 814

Issue 33 December 14- January 13,

2014EDiToRiAlUp FRonTFiVE MinUTEs WiTh…

7870 {money}

72 {business}

76 {economy}

78 {lifestyle}

38

ninE MonThs on By fiona mullen 42

cypRUs & TRAnspAREncy By andreas neocleous 76

58

62

15

LimassoL may be the second-Largest city in cyprus but

in many ways it is weLL ahead of the rest of the isLand. we

present our seLection of the Leading LimassoL-based

companies – LocaL and

internationaL – that are currentLy

heLping the city to weather the Latest economic and financiaL

storm.

58 | silEncE in coURT!Constantine Nicolaides regrets that not all lawyers and judges in Cyprus possess the key virtues of patience and respect.

60 | ciBA cElEBRATEs iTs 20th AnniVERsARy‘Business As Usual’ is the theme of the AGM

62 | ExTEnDing iTs gloBAl REAchNamed one of 2013’s fastest growing private companies with 100% growth in revenue over the last three years, Ameri-can Internet technology firm Global Reach has expanded to Cyprus.

65 | ipcc cARBon BUDgET To 2100 Will BE UsED By 2034 New PwC analysis sounds warning

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ΜΗΝΙΑΙΑ ΕΚΔΟΣΗ ΓΙΑ THN ΚΥΠΡΙΑΚΗ ΑΓΟΡΑ & ΤΑ ΣΤΕΛΕΧΗ | TEYXOΣ 91 | ΣεπτεμβριοΣ 2013

TΙΜΗ €4.95 | Σε ειδικη τιμη €3.40 για τhn kYρiakh 1/09/13 μαζι με την εφημεριδα Σημερινη

www.inbusinessnews.com

1 Α/ΦΟΙ ΛΑΝΙΤΗΣ

2 ΑρχΗ ΗΛεκΤρΙΣμΟυ κυπρΟυ

3 ΑΝΔρEΑΣ ΝεΟκΛEΟυΣ κΑΙ ΣΙΑ Δεπε

4 ALPHA BANK

5 AMBROSIA OILS

6 BARCLAYS

7 BERNHARD SCHULTE SHIPMANAGEMENT

8 ΒRITISH ρETROLEUM

9 CARREFOUR

10 CHAKARIAN COLOUR CENTER DULUX

11 COLUMBIA SHIPMANAGEMENT CYPRUS

12 CROWE HORWATH

13 εΛΛΗΝΙκΑ πεΤρεΛΑΙΑ κυπρΟυ (EKO)

14 ELYSEE IRRIGATION

15 ERNST & YOUNG

16 EXXONMOBIL κυπρΟυ (ESSO)

17 GRANT THORNTON

18 ΙκεΑ

19 KEAN

20 KPMG

21 LIDL CYPRUS

22 LUKOIL CYPRUS

23 μΙΤΣΙΔΗΣ ΔΗμΟΣΙΑ εΤΑΙρεΙΑ

24 MEDOCHEMIE

25 METRO SUPERMARKETS

26 MICROSOFT

27 μΤΝ

28 ΟμΙΛΟΣ εΛΛΗΝΙκΗΣ ΤρΑπεΖΑΣ

29 ΟμΙΛΟΣ εΤΑΙρεΙΩΝ P&P ICE CREAM

30 ΟμΙΛΟΣ εΤΑΙρεΙΩΝ VOICI LA MODE

31 ΟμΙΛΟΣ ευρΗκΑ

32 ΟμΙΛΟΣ ΛΑΝΙΤΗ

33 ΟμΙΛΟΣ ΦΩΤΟΣ ΦΩΤΙΑΔΗΣ

34 ΟμΙΛΟΣ χΑρ. πΗΛΑκΟυΤΑ

35 ΟμΙΛΟΣ J& P

36 ΟπΑπ κυπρΟυ

37 πεΤρΟΛΙΝΑ

38 PELETICO

39 PWC κυπρΟυ

40 QUANTUM ENERGY

41 REMEDICA

42 ΣυΝερΓΑΤΙκΟ ΤΑμΙευΤΗρΙΟ ΛεμεΣΟυ

43 STAROIL

44 ΤρΑπεΖΑ κυπρΟυ

45 ΤρΑπεΖΑ πεΙρΑΙΩΣ

46 υπερΑΓΟρεΣ ΑΛΦΑμεΓΑ

47 UNIVERSAL LIFE

48 VTT VASILIKO

49 ΦΑΝΟΣ Ν. επΙΦΑΝΙΟυ

50 χΑρΑΛΑμπΙΔΗΣ κρΙΣΤΗΣ

κοινωνικα ευαισθητεσεταιρειεσ

EDITORIAL

LOUCAS MARANGOSCEO, TFI Markets Ltd.

(Silver Sponsor)

POLIS ECONOMIDES

Chief Financial Director, Jumbo

Trading Ltd.

VARNAVAS THEODOSIOU

President and Managing Director,

ExxonMobil Cyprus Ltd.

YIANNIS TINIS Managing Director,

Amdocs Development Ltd.

ELENA LEONTIOU

Head of Media, IMH(Co-organiser)

DIETER ROHDENBURG

CEO, Intership Navigation Co. Ltd.

VIKTOR KISLYIPresident & CEO, Wargaming Public

Company Ltd.

PHILIP VAN DALSENCEO, MTN Cyprus

SERGEY POPRAVKO

Managing Director, Unicom Management

Services (Cyprus)

MEHRAN EFTEKHARGroup Head of Corporate

Services & Finance Director, Nest Investments Holdings

(Cyprus) Ltd.

CHRISTODOULOS ANGASTINIOTIS

Chairman, CIPA(Co-organiser)

HANS WOLFFDirector and Country

Manager, Barclays (Gold Sponsor)

NICOS ANASTASIADES

President of the Republic of Cyprus

2 ndCIPA INTERNATIONAL INVESTMENT AWARDS

5 291295 000577

0 0 0 0 1 >

ISSUE 30 SEPTEMBER 14 - OCTOBER 13, 2013PRICE €4.95

POwEREd By:

the international investment, finance & professional services magazine of cyprus

Special

EVGENIOS EVGENIOU

CEO, PwC Cyprus (Platinum Sponsor)

John Vickers,Chief Editor

[email protected]

Ring Out The Old, Ring In The New

W e all know that in order to progress in our personal and professional lives, we cannot stay in the same place for too long. Change is necessary but it can often be difficult to accept and even more difficult to implement.For the past nine months, Cyprus has been facing up to the need for change

in many areas and it has not been easy. The biggest casualty of the country’s bailout has been the banking sector – overnight, the second biggest bank in Cyprus ceased to exist and depositors in Bank of Cyprus lost 47.5% of their money. We have been told by the international lenders that the island has to change its business model and, over the next three years, the status of the three main semi-government corporations (Cyta, the EAC and the Cyprus Ports Authority) will change as privatisation plans are implemented. There are few people in this country who have not been subject to significant salary reductions and the most unfortunate are those who have seen their jobs disappear altogether.

No-one doubts that things have to change but knowing this does not make the situation easier to deal with. There have, fortunately, been a few positive outcomes that offer some encourage-ment: two Troika reviews full of praise for the Government’s handling of the terms set out in the Memorandum of Understanding, and the island’s first ratings upgrade in three years (for long-term sovereign debt to B- from CCC+) by Standard & Poor’s. Cyprus’ European partners now appear keen to assist in the rebuilding of the economy and there are even encouraging voices regarding a long-overdue settlement to the Cyprus issue.

There should be no illusions, however, about what awaits us in 2014. It is going to be a dif-ficult 12 months but Cyprus will survive as it has done in the past. As Limassol Mayor Andreas Christou notes in an interview in this issue (page 16), the place in which he grew up was not always the big, bustling city that it is today. But it has changed, progressed, developed and it con-tinues to do so. And while it may still be the second-largest city in terms of population, Limassol has been quite a success story on more than one occasion. For our cover story we have selected more than 120 outstanding companies in a range of sectors that are based in Limassol.

Coming back to the theme of change, I do not wish to give the impression that we at Gold are only good at giving advice to others. The changes that have been taking place in the global media sector over the past decade could not have been ignored by a publication like ours and I am delighted to inform you of our latest step forward. By the time you read this, the Gold News portal should be up and running (www.goldnews.com.cy) and you will be able to subscribe on-line to our Gold News Daily Newsletter. This exciting new venture does not mean an end to Gold magazine which will continue to provide and promote a broad range of views and analysis from those in the investment, finance and professional services sector. Gold News and the Daily Newsletter will merely enable us to provide more up-to-date news and to promote Cyprus to a much broader readership. The news portal will not replace Gold but it will complement it in a way that, I believe, will please you as readers. As always, you will let us know if we are right.

This time last year, I wrote “…as far as the economy is concerned, there can be little optimism for 2013 for the proverbial man in the street” and I described 2012 as “a somewhat disappoint-ing year”. I have already noted that 2014 is not going to be a bed of roses. What I can say, how-ever, is that Gold – in its monthly printed and digital format and in its new online version – will continue to bring you the news of the sectors on which we focus in the same responsible, serious and balanced way that we have been doing for the past 33 months. I thank you all for your sup-port and all of us at Gold wish you a Very Happy New Year.

6 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

MANAGING DIRECTOR George Michail

GENERAL MANAGER Daphne Roditou Tang

MEDIA MANAGERElena Leontiou

EDITOR-IN-CHIEF John Vickers

JOURNALISTEffy Pafitis

CONTRIBUTORS TO THIS ISSUE Fiona Mullen, Andreas Neocleous,

Chloe Panayides, Patrick Verhoeven, Dr. Artemis Yiordamli

ART DIRECTION Anna Theodosiou

SENIOR DESIGNERAlexia Petrou

PHOTOGRAPHY Jo Michaelides

MARKETING EXECUTIVE Kevi Chishios

SALES & BUSINESS DEVELOPMENT EXECUTIVE

Phivos KarayiannisADVERTISING EXECUTIVES

Irene Georgiou, Christopher ConstantinouOPERATIONS MANAGER

Voulla NicolaouSUBSCRIPTIONSMyria Neophytou

PRINTERS Cassoulides Masterprinters

CONTACT5 Aigaleo St., Strovolos 2057, Nicosia, Cyprus

Mailing address: P.O.Box 21185, 1503, Nicosia, Cyprus

Tel: +357 22505555, Fax: +357 22679820e-mail: [email protected]

website: www.goldmagazine.com.cysubscriptions: [email protected]

ISSN 1986 - 3543PUBLISHED BY IMH

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DIGITAL EDITIONS

editorialGOLDnew.indd 6 06/12/2013 15:17

IWC PORTUGUESE.ENGINEERED FOR NAVIGATORS

Portuguese Chronograph Classic.

Ref. 3904: The fact that Portugal’s greatest seafarers are remembered to this day is due not least to this watch: the appliquéd Arabic numer-als and the railway track chapter ring elegantly reference its legendary forerunner from the 1930s. But today’s sea-going pioneers are equally well equipped with the Chronograph Classic. The IWC-manufactured automatic 89361-calibre movement and its 68-hour power reserve keep it firmly on course even under windless conditions. Whether you’re aboard a historic three-master or a modern motor yacht,

its state-of-the-ar t technology and classic design soon make it clear who’s giving the orders IWC. ENGINEERED FOR MEN.

Mechanical chronograph movement, Self-winding, 68-hour power reserve when fully wound, Date display, Stopwatch function,Hour and minute counters combined in a totalizer at 12 o’clock, Flyback function, See-through sapphire-glass back, Water-resist-ant 3 bar, Diameter 42 mm, 18 ct red gold

up front

PwC US has been recog-nized as a Vanguard firm in Kennedy Consulting Research & Advisory’s Forensics &

Dispute Advisory report. The report assesses and evaluates service providers in the Forensics & Dispute market in two areas: forensic in-vestigations and dispute advisory & analysis. PwC was one of a few firms that achieved “Vanguard” status in both areas.

According to the report, PwC’s clients identify the firm as a global leader and best-in-class in dispute

advisory & analysis. Additionally, PwC has “taken steps to maintain [its] edge in the [dispute advisory & analysis] space” and has achieved “Vanguard status by virtue of a rare combination of outstanding depth in specific investigatory areas despite moderate breadth.”

“We understand the significant risks organisations face every day. Whether the forensic challenges are local or cross-border, our ex-perienced team around the world provides organisations with sea-soned support and solutions,” said Christos Tsolakis, Forensics Partner at PwC. “This Vanguard achievement is a testament to our ability to help clients with their most complex and urgent situations.”

PwC US gainS ‘VangUard’ StatUS

Double Win for Drambuie

8 Gold the international investment, finance & professional services magazine of cyprus

I nvestment in Art continues to thrive, with the value of works seemingly unaffected by the turmoil experienced by other commodities. Rival auction houses Christies and Sotheby’s both produced staggering sums at their

November auctions of Post-war and Con-temporary art, shattering previous record

prices for both individual works and total sales in art auctions.

Christie’s two-day auction series achieved a grand total of $782,368,375 setting a new record high for any auction series. Francis Bacon’s Triptych Three Studies of Lucian Freud sold for $142.4 mil-lion, becoming the most valuable work of art ever sold at auction while Jeff Koons’ Balloon Dog went under the hammer for $58.4 million,

becoming the most valuable work sold at auction by a living artist. The Sotheby’s Contemporary Art auction enjoyed similar success, with works such as Andy Warhol’s Silver Car Crash (Double Disaster) selling for $71.7 million and Liz #1 (Early Colored Liz) for $20.32 million, among others.

D rambuie recently celebrated a double award win at the Spirit Business Liqueur Masters 2013. Drambuie 15 was awarded the top

accolade of Master while Drambuie re-ceived Gold.Tim Dewey, Global Marketing Director at Drambuie, said: “We are thrilled to be recognised for not one, but two of our products by one of the industry’s most respected awards, with the wins high-lighting Drambuie’s ongoing objective to provide a superior liquid to consumers.”The highly prestigious Spirit Masters series, now in its sixth year, is fast becom-ing one of the most respected and high profile trade competitions in the industry, rewarding the finest brands on excellence. Drawing entries from around the world, each spirit is judged on its own merit by a panel of independent judges.For the past 15 years, LaikoCosmos Trading Ltd has been the exclusive distributor of Drambuie in Cyprus. Drambuie is a blend of the finest aged Scotch whisky, spices, and heather honey. The recipe was created more than 260 years ago exclusively for Prince Charles Edward Stuart of Scotland.

recordart auction Prices

New Accountants

I CAEW President Martyn Jones and ICPAC Vice President Nicos Chimarides congratulated 150 successful new Associate Chartered Accountants and seven global prizewinners at a graduation and prizegiving ceremony at the Hilton Park Hotel in Nicosia last month. The ceremony celebrated all the successful candidates who have qualified as ICAEW Chartered Accountants in 2012-2013, gaining the prestigious and internationally-recognised ACA qualification. The last year has seen spectacular success

from students in Cyprus, who won four of the top five prizes in the Professional Stage Exams in December 2012. This year also has also seen the 20th anniversary of ACA training being offered in Cyprus, highlighting the long relationship that the international accountancy body has with Cyprus.

CORRECTION There were a number of errors in last month’s cover story which we wish to correct. Regarding Antonis Paschalides & Co LLC. Alexia Melanie Paschalidou is an expert both in Banking Litigation as well as in Litigation & Arbi-tration. Charalambos Carlos Paschalides is an expert in Corporate & M&A and Tax & International Tax Planning. Antonis Paschalides is an expert in Banking & Finance, General Business Law and he specialises also in Energy Law. The firm is a candi-date for the award Energy Law Firm of the Year in Cyprus (Corporate INTL Maga-zine 2014 Global Awards). Regarding Kinanis LLC, Despo Andreou and Soula Kypri-anou no longer work for the firm. Additionally, we wish to note that Chris Yiangou works for George Y. Yiangou LLC and that Stavros Pavlou is the Senior & Managing Partner of Patrikios Pavlou & Associates LLC. Apologies to all those concerned for any inconvenience that incorrect or outdated information may have caused.

IRI Hellas Ltd.in affiliation with the Marshall Islands Maritime & Corporate Administrators

tel: +30 210 4294 404 | [email protected]

www.register-iri.com

The Marshall IslandsCorporate Registry

The leading jurisdiction for

• Asset Management,

• Vessel Ownership

• Real/Intellectual Property Holdings

• Initial Public Offerings/ Publicly Traded Companies

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©Corbis

P atrikios Pavlou & Associates LLC held a cocktail party at the Four Seasons Hotel,

Limassol in October to celebrate the firm’s 50th an-niversary in Cyprus and on the international legal scene. Partners, lawyers and staff enjoyed an emotional gath-ering with friends, clients and associates from Cyprus

and abroad. In an address to the invited guests, Stavros Pavlou, Senior & Manag-ing Partner, looked back over the firm’s long history, before referring to today’s challenges and recalling the firm’s core ethics which have not changed over the past half-century: providing value, respect, commitment and professionalism to clients and associates. Among

the key figures honoured, Patrikios Pavlou, Founder & Senior Internal Consultant, was singled for the wisdom and guidance he has given the firm since 1963. Patrikios Pavlou & Associates LLC announced that an amount equivalent to the cost of the event would be donated to several charitable organisa-tions supporting the sick and needy throughout Cyprus.

50th AnniversAry

(L-R) Patrikios Pavlou, Persa

Pavlou, Stravros Pavlou, Stella Louca Pavlou, Chrysostomos

Nicolaou, Yianna Nicolaou,

Lia Iordanou Theodoulou.

The University of Cyprus, in collabora-tion with IMH and Geomatic Technolo-gies, has produced a new mobile appli-cation that guides

tourists in Cyprus to local attractions and places of interest. Allowing users to access an extensive array of information, directions, reviews and suggestions to enhance their time on the island, the Cyprus Tour-ist Guide app will provide visitors with a glimpse of the island’s many archaeological, religious, leisure and entertainment hotspots.

Accessed from users’ mobile devices, now the most common and convenient information platform, the app eliminates the need for paper printing and binding like most traditional tourist guides. The Cyprus Tourist Guide selects users’ current locations manually, enabling those without a built-in area sensor full ac-cess to its benefits. Compatible with Android, Microsoft and iOS mobile software, this new app can be ac-cessed by all smartphones.

Its exclusive features allow us-ers to:

View lists of nearby attractions with directions automatically loaded from their current location.

Read detailed descriptions of attractions, as well as relevant information such as opening hours, contact details and entrance fees.

Filter attractions according to their preferences and view only relevant places of interest.

View ratings and suggestions as posted by other users, as well as create, contribute and save visited attractions.

Create tour plans by adding at-tractions to lists, allowing them to organize their holidays beforehand and make the most of their time in Cyprus.

User profiles, including personal information such as gender, age, nationality, preferences and visited locations, are saved anonymously on the application, offering complete privacy.

The Cyprus Tourist Guide is avail-able for download via Google Play and start your tour of Cyprus today!

Cyprus TourisT Guide on your Mobile

Project team:

the project is funded by the research Promotion Foundation under the National Framework

Programme for research, technological Development and

Innovation 2009-2010 with co-financing from the republic of

cyprus and the european regional Development Fund of the eU.

Documents

Pages from issue33 10pages