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Cyprus & Ukraine sign intergovernmental cooperation protocol

Cyprus & Ukraine sign intergovernmental cooperation protocol

On 27 June 2012, Cyprus and Ukraine signed a protocol on economic, scientific, technical and industrial cooperation. Taxand Cyprus and Taxand Ukraine investigate the development of the protocol.

The Cypriot Minister of Finance stated in his speech that “the strategic bilateral and regional economic partnerships are a necessity in the contemporary economic scene, especially at times of economic crises like the one that all of us are witnessing these days. Intergovernmental cooperation, concerted and coordinated action and solidarity among nations are the means to react more effectively to such global challenges.

The required legal framework within which Cypriot and Ukrainian economic relations have been proliferating is being built in a systematic way by the 2 Governments and it is ever-expanding. It comprises of agreements fostering and regulating bilateral cooperation in a host of sectors including cooperation in agriculture, public health, air services, and maritime merchant shipping.”

The protocol is expected to boost cooperation between the 2 countries especially in the area of trade, tourism and transport as well as in the emerging sectors such as energy, health and IT. Statistics show that bilateral trade in goods and services between Cyprus and Ukraine in 2012 has increased by 1,6% compared to 2011, with total trade amounting to approximately $1614 million.


Your Taxand contacts for further information are:
CYPRUS
Chris Damianou
T. +357 22 699 222
E. chris.damianou@eurofast.eu

Eylem Philippou
T. +357 22 699 222
E. eylem.philippou@eurofast.eu

UKRAINE
Olga Khoroshyllova
T. +380 44 492 8282
E. o.khoroshylova@epap.ua

Oleksandr Maydanyk
T. +380 44 492 8282
E. o.maydanyk@epap-taxand.com

Taxand's Take

As well as this protocol the Cypriot minister also discussed the potential for a series of agreements signed over time with Ukraine to build a legal framework that would assist economic relations to expand further, covering sectors such as agriculture, public health, air services, and maritime merchant shipping.

The 2 countries also signed a memorandum of understanding in the field of digital cartography and geographic information systems (GIS).

Cyprus and Ukraine also signed a new double tax treaty on November 2012 which was approved by the Ukrainian Cabinet of Ministers on 17 May 2013. However the new treaty is subject to ratification in both states before coming into force. If such ratification and the subsequent notifications take place by the end of 2013, the treaty will apply from 1 January 2014.On 4 July 2013 the bill treaty ratification was approved by the Ukranian parliament. When it comes into force the new treaty will replace the Cyprus - Former USSR Income and Capital Tax Treaty of 1982.

Taxand's Take Author

Chris Damianou