meeting

LNG terminal construction in Vasiliko to resume (updated)

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LNG terminal construction in Vasiliko to resume (updated)

The CPP-Metron Consortium Ltd (CMC) is scheduled to resume construction of an LNG terminal in Vasiliko over the upcoming weekend. This decision was made after a meeting between CPP representatives from China and Energy Minister George Papanastasiou. The meeting, described as ‘productive’, focused on the relationship between the two sides rather than the differences regarding the project’s execution. CMC plans to bring personnel from China for the project, and the Cypriot side has agreed to facilitate this by issuing visas. The General Manager of CPP expressed gratitude towards the minister for his positive approach towards completing the project. Construction is set to restart on the morning of 16 March 2024. The government had previously considered terminating the deal due to a dispute that led to the halting of construction in late January and a claim for €200 million from Cyprus by the consortium in a London court.

EU Commission VP comes to Cyprus next week

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EU Commission VP comes to Cyprus next week

Margaritis Schinas, the Vice-President of the European Commission for the promotion of the European Way of Life, will visit Cyprus next Friday. During his visit, he will participate in an inter-ministerial meeting with several Cypriot ministers, including Interior Minister Constantinos Ioannou, Education Minister Athena Michaelidou, Justice Minister Marios Hartsiotis, Deputy Social Welfare Minister Marilena Evangelou, and Deputy Culture Minister Vassiliki Kassianidou. Schinas is also scheduled to deliver a speech at the University of Nicosia on democracy and the European elections, meet with the Speaker of the House of Representatives, Annita Demetriou, and meet with members of the management board of the Cyprus Cancer Research Institute. The debate at the University of Nicosia will be open to the public and will take place at the UNESCO Amphitheatre, where Schinas will discuss various issues including migration, security, education, equality, diversity, culture, sport, and the commission’s dialogue with religious organizations.

President says with political will Cyprus talks can recommence

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President says with political will Cyprus talks can recommence

President Nikos Christodoulides expressed optimism that with political will, the goal of resuming Cyprus talks can be achieved. He made these remarks while commenting on the Cyprus problem and the visit of UN personal envoy Maria Holguin at an event for refugee women. Holguin is on her second round of contacts and plans to return to Cyprus in April after visiting several European capitals of EU member states and Brussels. Christodoulides mentioned that he has been in telephone contact with Holguin and will meet her to discuss the results of her contacts and exchange views.

Police deny delays over monk scandal

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Police deny delays over monk scandal

The police have been criticized for their handling of a scandal involving monks, with accusations of special treatment due to the church’s influence being denied by the police. Videos have surfaced showing a monk assaulting a woman and staging a fake miracle, but lawyers claim these videos are doctored and have criticized the police’s approach, suggesting evidence may have been tampered with. The police spokesman, Christos Andreou, stated that there is insufficient evidence for arrests and mentioned the possibility of issuing European arrest warrants to prevent implicated parties from fleeing the country. He confirmed that no police action would be taken until after a Holy Synod meeting, as agreed upon by the attorney general, police chief, and archbishop. Andreou also revealed that police leadership was unaware of officers in civilian clothes being present at the Osiou Avakoum monastery during an incident involving hooded individuals. This operation, ordered by Tamassos Bishop Isaias for transferring valuable items, unexpectedly included €800,000 in cash, which the police did not intervene to secure, leading to criticism from MPs. The presence of plainclothes officers and the far-right party leader, Christos Christou, at the scene has sparked further controversy. The involvement of the secret service has been rumored but not confirmed. The police have investigated the monastery multiple times but not the bishopric, and it is unclear when the money was taken into police custody for investigation.

Russia systematically tortures Ukraine POWs, UN commission says

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Russia systematically tortures Ukraine POWs, UN commission says

A United Nations commission of inquiry on Ukraine reported that Russia has systematically tortured Ukrainian prisoners of war, including threats of rape and electric shocks on genitals. The commission described these acts as “widespread and systematic,” potentially amounting to crimes against humanity. The report highlighted severe and brutal treatment of detainees, leading to significant pain and suffering. Despite Russia’s denial of such actions, the U.N. Human Rights Council in Geneva, which received the report, will consider extending the commission’s mandate. The commission also noted instances of ill-treatment by Ukrainian forces, which Kyiv has pledged to investigate. Additionally, the report detailed extreme conditions in Russian detention centers, including prisoners resorting to eating soap, worms, and leftover dog food. One Ukrainian soldier experienced severe beatings, leading to significant health issues and multiple hospitalizations. The commission’s chair, Erik Møse, emphasized the need for further investigation to establish these acts as part of Russian policy, while Germany’s ambassador called for accountability. Ukraine’s ambassador urged for the extension of the commission’s mandate to gather more evidence for potential use in legal proceedings.

Japan union group announces biggest wage hikes in 33 years, presaging shift at central bank

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Japan union group announces biggest wage hikes in 33 years, presaging shift at central bank

Japan’s largest companies have agreed to a 5.28% wage increase for 2024, the largest in 33 years, according to the country’s largest union group. This development is seen as a sign that the Bank of Japan may soon end its decade-long stimulus program, especially considering the bank’s eight years of negative interest rate policy. The wage increase exceeds expectations and comes amid annual wage negotiations, which are crucial for the Bank of Japan’s policy decisions. Policymakers hope the wage hikes will boost household spending and support sustainable economic growth. Workers had initially requested a 5.85% increase. The wage hikes are expected to result in positive real wages by April-June 2024. Rengo, the trade union group representing about 7 million workers, aimed for more than 3% increases in base pay. Rising income inequality, inflation, and labor shortages were cited as reasons for the significant wage increase, with part-time workers expected to see a 6% increase this fiscal year. The government hopes these wage hikes will benefit smaller and medium-sized firms, which make up 99.7% of all enterprises. However, wage increases for smaller companies are expected to be lower. Among smaller delivery companies, only 57% plan to raise wages in the upcoming fiscal year. Despite wage increases, real wages have fallen for 22 consecutive months due to inflation not keeping pace. Toyota Motor announced its largest pay increase in 25 years, indicating a strong stance in labor negotiations. The central bank may end negative interest rates as early as its next meeting on March 18-19, influenced by the wage increases and chronic labor shortages in Japan. Prime Minister Fumio Kishida encourages companies to raise wages to combat deflation and improve Japan’s wage growth compared to other OECD countries. The annual pay negotiations, known as “shunto” or “spring labor offensive,” are a key aspect of Japanese business culture, emphasizing collaborative labor-management relations.

Demetriou advocates for resuming Cyprus issue negotiations

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Demetriou advocates for resuming Cyprus issue negotiations

Disy leader Annita Demetriou met with the UN Secretary-General’s personal envoy, Maria Angela Holguin, to discuss the Cyprus issue. Demetriou conveyed that the only viable solution is to resume negotiations from where they stopped in Crans-Montana, emphasizing a solution under the UN’s auspices based on a bizonal, bi-communal federation with political equality. She highlighted the danger of maintaining the status quo and rejected a two-state solution, advocating for negotiations based on the Guterres plan and previous convergences. Demetriou also shared Disy’s initiatives to foster conditions conducive to resolving the Cyprus issue and stressed the urgency of addressing the conflict, given the ongoing occupation for over 50 years.

Government , ‘has no plan B’ over Vasiliko LNG terminal

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Government , ‘has no plan B’ over Vasiliko LNG terminal

The Vasiliko liquefied natural gas (LNG) terminal project in Cyprus is currently stalled, with no alternative plan (“plan B”) in place, as stated by Energy Minister George Papanastasiou. The project is facing delays due to arbitration proceedings between the Republic of Cyprus and the Chinese-led consortium responsible for building the LNG plant. Despite reservations about the consortium, the government aims to complete the project with the current contractor as the fastest solution, requiring the project to be delivered by July 2024. This deadline comes after two previous extensions, with the initial completion date set for September 2022. Papanastasiou remains optimistic about the project’s completion and is in discussions with the Chinese Ambassador Liu Yantao. Concerns about potential violations and the need for possible criminal investigations have been raised, with some suggesting the matter be referred to the Anti-Corruption Authority.

Euro awaits US data, ECB speakers

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Euro awaits US data, ECB speakers

The EURUSD exchange rate was trading in the mid 1.0900s after reaching a peak at 1.0981 the previous week. Upcoming data releases and events are expected to introduce some volatility to the Euro-dollar pair. In the US, upcoming factory gate inflation and Retail Sales data could influence expectations regarding the Federal Reserve’s timeline for interest rate cuts, which is a significant factor for the US Dollar. Economists anticipate a decrease in Core PPI to 1.9% year-over-year in February from 2.0% in January, with a month-on-month forecast showing a 0.2% increase compared to the 0.5% increase the previous month. The headline Producer Price Index (PPI) is expected to show a 1.1% year-over-year gain, up from 0.9% in January, and a 0.3% month-on-month gain, consistent with the previous month. This data is a crucial indicator for CPI inflation, as increases in wholesale costs are typically passed on to consumers. Market participants are betting on a 67.2% probability of the Fed cutting interest rates in June, according to the CME FedWatch Tool. US Treasury Secretary Janet Yellen stated that it seems unlikely for interest rates to return to pre-COVID-19 levels and deemed the interest rate projections in President Biden’s budget plan as “reasonable.” In Europe, several ECB officials are set to speak, potentially providing insights into whether interest rates will be cut in April or June. If inflation remains high, interest rates are likely to stay elevated, supporting the Euro. ECB Governing Council member Francois Villeroy de Galhau indicated a preference for an April rate cut, while Bank of Austria Governor Robert Holzmann and ECB President Christine Lagarde suggested a June timeline for revisiting rate policies. The timing of ECB rate cuts could impact the Euro and EURUSD exchange rate. After recent US inflation data, a calmer period is expected in the EURUSD pair ahead of the next week’s Federal Reserve meeting.

Keve reiterates support for intercommunal trade in meeting with UN envoy

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Keve reiterates support for intercommunal trade in meeting with UN envoy

Cyprus Chamber of Commerce and Industry (Keve) president Stavros Stavrou and members of the chamber’s executive committee met with UN Secretary-General’s envoy to Cyprus, Maria Angela Holguin Cuellar, at the Keve headquarters in Nicosia. They discussed the regulation of green line trade, challenges, prospects for further trade development between the two communities, and how this could help resolve the Cyprus problem. Stavrou emphasized the chamber’s role as the state’s advisor on economic matters and its support for equal commercial and economic cooperation between the Greek Cypriot and Turkish Cypriot communities. He stated that such cooperation aids in efforts to resolve the Cyprus problem, aligning with UN Security Council resolutions and decisions. Stavrou also assured Cuellar of the chamber’s readiness to support government and UN efforts to resume negotiations.