Cyprus Eyes Rebound from Loss of Russian, Ukrainian Tourists

Tourists visit the sea caves during sunset in the southern coastal resort of Ayia Napa in the southeast Mediterranean island of Cyprus, Sunday, May 29, 2022.  (AP Photo/Petros Karadjias)
Tourists visit the sea caves during sunset in the southern coastal resort of Ayia Napa in the southeast Mediterranean island of Cyprus, Sunday, May 29, 2022. (AP Photo/Petros Karadjias)
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Cyprus Eyes Rebound from Loss of Russian, Ukrainian Tourists

Tourists visit the sea caves during sunset in the southern coastal resort of Ayia Napa in the southeast Mediterranean island of Cyprus, Sunday, May 29, 2022.  (AP Photo/Petros Karadjias)
Tourists visit the sea caves during sunset in the southern coastal resort of Ayia Napa in the southeast Mediterranean island of Cyprus, Sunday, May 29, 2022. (AP Photo/Petros Karadjias)

Archimandrite Agathonikos bows before the silver-covered icon of the Virgin Mary to offer prayers for an end to the war between “peoples of the same religion” in Ukraine.

Until the outbreak of the COVID-19 pandemic, hundreds of Russian and Ukrainian Orthodox faithful visiting Cyprus would come daily to venerate the relic. Tradition dictates it was fashioned by Luke the Evangelist from beeswax and mastic and blessed by the Virgin herself as a true representation of her image, AFP said.

With the war and a European Union ban on Russian flights, the estimated 800,000 Russian and Ukrainian vacationers that head to Cyprus each year for its warm, azure waters and religious history stretching back to the dawn of Christianity are practically down to zero. In record-setting 2019, they made up a fifth of all tourists to the island nation in the Mediterranean Sea south of Turkey.

“We’ve had many worshippers from these two countries fighting today,” Agathonikos said. “I wish and pray to our Virgin that these two peoples who fight today are shown the way to peace — the faithful in both countries should pray for that.”

He is the abbot of Kykkos Monastery on the northeastern ridgeline of Cyprus’ Troodos mountain range, which has been home to the icon for nearly a thousand years. It, the tomb of St. Lazarus in Larnaca and the monastery of Stavrovouni that houses a large piece of the Holy Cross are important Cyprus stops for Russians and Ukrainians on pilgrimages to the Holy Land, Agathonikos said.

Their absence this year, coming on the back of a steep drop in tourism at the pandemic’s outset, has cut into the revenue of a country whose tourism sector accounts for more than 10% of its economy. Other nations that rely on Russian and Ukrainian visitors like Turkey, Cuba and Egypt also braced for losses just as tourism began bouncing back.

Cyprus Deputy Minister for Tourism Savvas Perdios estimates the loss from Russian and Ukrainian visitors will total about 600 million euros ($645 million) this year, with expectations before the war that the number of visitors would be approaching that of 2019.

Cyprus is one of the shortest flights from Russia to any Mediterranean holiday destination, but the EU flight ban negated that advantage.

Businesses are hurting, especially local travel agencies that work with big tour operators focusing on the Russian market. Some hotels on Cyprus’ popular eastern coastline that catered to Russian vacationers are feeling the sting, too, said Haris Loizides, board president of the Cyprus Hotel Association.

An additional burden weighing on hotel owners is high inflation that has cranked up operating costs, he said.

Vassos Xidias, proprietor of a seafood tavern bearing his name overlooking the small Ayia Napa harbor, says his business has dropped by as much as 50% this year because of losing the Russian market.

“There’s a huge problem in our work," Xidias said. “Now, we’ll see how much this will be covered by the European market and others. It’s the gamble that we’re waiting to see over the next four months that remain” of the tourist season.

Despite the upheaval, officials say that thanks to foresight and planning to find new markets even before Russia invaded Ukraine, Cyprus is projected to make up a sizable chunk of the lost revenue.

More vacationers are expected this summer from European markets, including Scandinavian countries, France and Germany, who spend more per day on average than Russians.

“Now we are a point of comparison where, you know, a Russian person will be leaving in Cyprus around 60 euros per person per day, whereas other nationalities, around 90 euros,” Perdios says.

While there were no direct flights from France to Cyprus two years ago, 20 flights will take off each week this year. Weekly flights from Germany and Scandinavian countries have increased to 50 and 30, respectively, this year — higher than in 2019.

Lozides says hotel owners may be reporting fewer bookings than 2019, but higher guest spending is expected to boost revenue.

Both Loizides and Perdios say this optimism is driven by the public’s desire to get away after two years of pandemic lockdowns.

“Nothing is going to stop people from traveling this year,” Perdios said.

Loizides said hotel owners haven’t given up entirely on bringing Russian tourists this summer. He says they’re looking into possibly getting Russians to Cyprus through countries not bound by the flight ban, like Serbia, Georgia and Israel.

Perdios says his ministry’s revamped tourism strategy has gained traction in European markets as it highlights what Cyprus has to offer beyond sun and surf.

That includes vegan-friendly hotels and winery tours through mountainous villages to learn about wines such as Commandaria, winner of the first international wine competition in 1224.

“We have done so much work in order to be able to stand before you today and say, ‘Hey, you know what? It’s going to be an OK season. It’s going to be a decent season. It’s not a disaster. And we’re going to be all right,'” Perdios said.



Saudi Arabia Allows Contracting Exceptions for Firms without Regional HQ

The King Abdullah Financial District in Riyadh (Asharq Al-Awsat)
The King Abdullah Financial District in Riyadh (Asharq Al-Awsat)
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Saudi Arabia Allows Contracting Exceptions for Firms without Regional HQ

The King Abdullah Financial District in Riyadh (Asharq Al-Awsat)
The King Abdullah Financial District in Riyadh (Asharq Al-Awsat)

Saudi Arabia has introduced greater flexibility into its investment environment, allowing government entities, under strict controls to safeguard spending efficiency and ensure the delivery of critical projects, to seek exceptions to contract with international companies that do not have regional headquarters in the kingdom.

The Local Content and Government Procurement Authority notified all government bodies of the mechanism to apply for exemptions through the Etimad digital platform.

The step is designed to balance enforcement of the “regional headquarters relocation” decision, in force since early 2024, with the needs of technically specialized projects or those driven by intense price competition.

Under a government decision that took effect at the start of 2024, state entities, including authorities, institutions and government-affiliated funds, are barred from contracting with any foreign commercial company whose regional headquarters in the region is located outside Saudi Arabia.

According to the information, the Local Content and Government Procurement Authority informed all entities of the rules governing contracts with companies that lack a regional headquarters in the kingdom and related parties.

Government entities may request an exemption from the committee for specific projects, multiple projects or a defined time period, provided the application is submitted before launching a tender or initiating direct contracting procedures.

Submission mechanism

In two circulars, the authority detailed how to submit exemption requests and clarified the cases in which contracting is permitted under the controls. It said the exemption service was launched on the Etimad platform in November 2025.

The service is available to entities that float tenders through Etimad. Requests for tenders launched before the service went live, as well as those issued outside the platform, will continue to follow the previously adopted process.

Etimad is the kingdom’s official financial services portal run by the Ministry of Finance, aimed at driving digital transformation of government procedures and boosting transparency and efficiency in managing budgets, contracts, payments, tenders and procurement. The platform streamlines transactions between state entities and the private sector.

Technical criteria

When issuing the contracting controls, the government made clear that companies without a regional headquarters in Saudi Arabia, or related parties, are not barred from bidding for public tenders.

However, their offers can only be accepted in two cases: if there is no more than one technically compliant bid, or if the offer ranks among the best technically and is at least 25% lower in price than the second-best bid after overall evaluation.

Contracts with an estimated value of no more than 1 million riyals ($266,000) are also exempt. The minister may, in the public interest, amend the threshold, cancel the exemption or suspend it temporarily.

More than 700 headquarters

More than 700 multinational companies had relocated their regional headquarters to Riyadh by early 2026, exceeding the initial target of attracting 500 companies by 2030. The program seeks to cement the kingdom’s position as a regional business hub and to localize global expertise.

When announcing the contracting ban, Saudi Arabia said the move was intended to incentivize foreign firms dealing with the government and its affiliated entities to adjust their operations.

It aims to create jobs, curb economic leakage, raise spending efficiency and ensure that key goods and services procured by government entities are delivered inside the kingdom with appropriate local content.

The government said the policy aligns with the objectives of the Riyadh 2030 strategy unveiled during the recent Future Investment Initiative forum, where 24 multinational companies announced plans to move their regional headquarters to the Saudi capital.

It stressed that the decision does not affect any investor’s ability to enter the Saudi economy or continue working with the private sector.

 


IMF Board to Review Staff-level $8.1 Bln Agreement for Ukraine

The city's downtown on a frosty winter day, amid Russia's attack on Ukraine, in Kyiv, Ukraine February 19, 2026. REUTERS/Alina Smutko
The city's downtown on a frosty winter day, amid Russia's attack on Ukraine, in Kyiv, Ukraine February 19, 2026. REUTERS/Alina Smutko
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IMF Board to Review Staff-level $8.1 Bln Agreement for Ukraine

The city's downtown on a frosty winter day, amid Russia's attack on Ukraine, in Kyiv, Ukraine February 19, 2026. REUTERS/Alina Smutko
The city's downtown on a frosty winter day, amid Russia's attack on Ukraine, in Kyiv, Ukraine February 19, 2026. REUTERS/Alina Smutko

The International Monetary Fund on Thursday said its board ​would review a staff-level agreement for a new $8.1 billion lending program for Ukraine in coming days.

IMF spokeswoman Jule Kozack told reporters that Ukrainian authorities had completed the prior actions needed to move forward with the request ⁠of a new ⁠IMF program, including submission of a draft law on the labor code and adoption of a budget.

She said Ukraine's economic growth in 2025 ⁠was likely under 2%. After four years of war, the country's economy had settled into a slower growth path with larger fiscal and current account balances, she said, noting that the IMF continues to monitor the situation closely.

"Russia's invasion continues to take a ⁠heavy ⁠toll on Ukraine's people and its economy," Kozack said. Intensified aerial attacks by Russia had damaged critical energy and logistics infrastructure, causing disruptions to economic activity, Reuters quoted her as saying.

As of January, she said, 5 million Ukrainian refugees remained in Europe and 3.7 million Ukrainians were displaced inside the country.


US Stocks Fall as Iran Angst Lifts Oil Prices

A screen displays a stock chart at a work station on the floor of the New York Stock Exchange (NYSE) in New York City, US, April 6, 2022. REUTERS/Brendan McDermid
A screen displays a stock chart at a work station on the floor of the New York Stock Exchange (NYSE) in New York City, US, April 6, 2022. REUTERS/Brendan McDermid
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US Stocks Fall as Iran Angst Lifts Oil Prices

A screen displays a stock chart at a work station on the floor of the New York Stock Exchange (NYSE) in New York City, US, April 6, 2022. REUTERS/Brendan McDermid
A screen displays a stock chart at a work station on the floor of the New York Stock Exchange (NYSE) in New York City, US, April 6, 2022. REUTERS/Brendan McDermid

Wall Street stocks retreated early Thursday as worries over US-Iran tensions lifted oil prices while markets digested mixed results from Walmart.

US oil futures rose to a six-month high as Iran's atomic energy chief Mohammad Eslami said no country can deprive the Islamic republic of its right to nuclear enrichment, after US President Donald Trump again hinted at military action following talks in Geneva.

"We'd call this an undercurrent of concern that is bubbling up in oil prices," Briefing.com analyst Patrick O'Hare said of the "geopolitical angst."

About 10 minutes into trading, the Dow Jones Industrial Average was down 0.6 percent at 49,379.46, AFP reported.

The broad-based S&P 500 fell 0.5 percent to 6,849.35, while the tech-rich Nasdaq Composite Index declined 0.6 percent to 22,621.38.

Among individual companies, Walmart rose 1.7 percent after reporting solid results but offering forecasts that missed analyst expectations.

Shares of the retail giant initially fell, but pushed higher after Walmart executives talked up artificial intelligence investments on a conference call with analysts.

The US trade deficit in goods expanded to a new record in 2025, government data showed, despite sweeping tariffs that Trump imposed during his first year back in the White House.