A 20% increase has been recorded in the Cyprus ship registry since September 2023, the Permanent Secretary of the Deputy Ministry of Shipping Stelios Himonas has revealed.
Speaking to the House Finance Committee during the presentation of the Μinistry’s 2026 budget on 31 October, Himonas also noted a 4.5% rise in the number of companies registered under the Tonnage Tax System.
He said that the 2026 budget is slightly in surplus, with expenditures estimated at €18.7 million and expected revenues at €20.3 million. The 4% increase in revenues compared with the 2025 budget, he added, reflects the effectiveness of the strategies implemented by the Deputy Ministry to further develop Cyprus’ shipping sector.
According to Himonas, the actions and projects planned for 2026 aim to strengthen the maritime industry and enhance Cyprus’s role and influence in international fora. He stressed that despite the impact of EU sanctions on Russia due to the war in Ukraine and the ongoing Turkish embargo on Cyprus-flagged ships, the competitiveness of Cyprus shipping and the international standing of the Cyprus registry continue to improve.
He explained that the losses sustained by the Cyprus registry following the departure of ships — mainly tankers — because of EU sanctions on Russia have now been fully recovered.
Asked about the financial impact of the Turkish embargo, Himonas said that it cannot be accurately quantified, as it essentially concerns lost potential revenue. However, he added that the Deputy Ministry is aware that some companies that would otherwise consider registering their ships under the Cyprus flag are unable to do so because they cooperate with Turkish ports.
As part of its efforts to expand the Cyprus registry, the Deputy Ministry, he said, identifies vessels that do not operate in Turkish ports and focuses on promoting the advantages of the Cyprus flag to them. It also approaches shipbuilding companies directly to promote registration under the Cyprus registry. “These actions have paid off and have mitigated the impact,” Himonas said.
According to data from the Central Bank of Cyprus, cited by Himonas, ship management contributes 5.5% to the country’s Gross Domestic Product (GDP), and this share is rising. He added that Cyprus is the largest ship management center in the EU, generating €13.4 million in revenue for the country, with related expenses amounting to €6 million.
He also said that the Deputy Ministry is focusing on further development initiatives, including the promotion of Cyprus as a cruise destination and the creation of conditions to attract and host mega-yachts.
Himonas also expressed the Deputy Ministry’s commitment to maintaining the Cyprus–Greece ferry link, noting that the contract with the operating company has been extended until 2027.
(Source: CNA)
