NICOSIA // The Russian president, Dmitry Medvedev, might well feel right at home when he arrives in Cyprus this morning.
He will be greeted in fluent Russian by the European Union's only communist head of state. Mr Medvedev's Cypriot counterpart, Demetris Christofias, has a doctorate in history from a Soviet-era university in Moscow and once jokingly described himself as the EU's "red sheep". He has better contacts with the Kremlin than with the White House or Downing Street.
Analysts say Mr Medvedev's visit is aimed at bolstering the economic and diplomatic ties that bind Russia, a world power with a population of 141 million to Cyprus, a small, divided Mediterranean island of 1 million people. "Cyprus is Russia's spokesman in the EU, just like Russia is Cyprus's spokesman at the UN Security Council," a European diplomat said.
Russia is also one of the largest investors in Cyprus - and vice versa. Investment from Cyprus into Russia totalled US$52.2 billion (Dh192bn) over the past five years, while Russian investment into Cyprus in the period amounted to $15.96bn, much of it pumped into prime, sea-view real estate.
Most of the money invested in Russia through Cyprus is Russian cash being repatriated, but Cyprus also serves as a low-tax gateway for large western companies investing in Russia. Cyprus might have a nominally communist leader, but it is an ardently capitalist and entrepreneurial country.
The economic relationship between Russia and Cyprus will be placed on a sounder basis today when the two presidents renew a treaty to avoid double taxation. Provisions for greater transparency in the new pact will help Russian authorities to track Russians dodging taxes on repatriated dividends from Cyprus-based companies.
Economic ties date back decades to when Cyprus swapped wine in bulk with the Soviet Union in return for tractors. Russian businessmen arrived in Cyprus in the early 1990s after the collapse of communism. The island provided a first step into the capitalist world and the path was smoothed by cultural, historical and Orthodox Christian ties. In those days when few Russians spoke English, a significant minority of Cypriots knew Russian.
Cyprus's thriving communist party, Akel, had close ties with the former Soviet Union and poorer Cypriot students received scholarships in the East bloc.
Many successful Cypriot communist lawyers and accountants prospered by establishing Russian companies and teaching Russians how to be good capitalists. The concentration and vitality of Russian business activity at the time raised suspicions that Cyprus was a favoured destination for the flight of Russian capital and attracting corrupt asset plunderers from the former Soviet Union. Western-finger pointing infuriated Cypriot officials who insisted most Russian capital was not basking in the island's sun, but flowing to other havens, such as London.
Cypriot officials still insist that Russia's super-rich expatriates live in London, not in Cyprus. A Cypriot economist said the island is home mostly to "middle- and upper-class Russians, not billionaire oligarchs". The Russian presence is obviously far more visible in a small country like Cyprus than in Britain. About 60,000 Russian-speakers - including both Russians and ex-Soviet citizens - live in Cyprus. Most are well-paid company employees and executives.
Every city in Cyprus hosts petrol stations owned by the Russian energy giant Lukoil as well as Russian DVD and grocery stores. The Russian presence is also reflected by its sprawling embassy compound in Nicosia, which faces the far more heavily fortified US Embassy along a road nicknamed Microwave Alley. And Russian tourists are big business. About 160,000 visit Cyprus annually, an more are expected. Only the UK, the island's former colonial master, provides more holidaymakers. But Russian tourists spend more and, according to hospitality workers, are bigger tippers than the British and less fussy than Germans.
Russian home-buyers are also shoring up the faltering property market here. Most have settled plush villas in Limassol, a resort on the island's southern coast called "Little Moscow". Many shop signs use the Cyrillic alphabet and a Russian Orthodox church was inaugurated this year.
"Russians feel very comfortable in Limassol," said Natalia Kardash, a publishers of a local weekly Russian newspaper, Vestnik Kipra. "There are Russian schools here, Russian hairdressing and beauty salons. The mayor of Limassol has described this city as the most Russian outside of Russia itself."
mtheodoulou@thenational.ae
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
No more lice
Defining head lice
Pediculus humanus capitis are tiny wingless insects that feed on blood from the human scalp. The adult head louse is up to 3mm long, has six legs, and is tan to greyish-white in colour. The female lives up to four weeks and, once mature, can lay up to 10 eggs per day. These tiny nits firmly attach to the base of the hair shaft, get incubated by body heat and hatch in eight days or so.
Identifying lice
Lice can be identified by itching or a tickling sensation of something moving within the hair. One can confirm that a person has lice by looking closely through the hair and scalp for nits, nymphs or lice. Head lice are most frequently located behind the ears and near the neckline.
Treating lice at home
Head lice must be treated as soon as they are spotted. Start by checking everyone in the family for them, then follow these steps. Remove and wash all clothing and bedding with hot water. Apply medicine according to the label instructions. If some live lice are still found eight to 12 hours after treatment, but are moving more slowly than before, do not re-treat. Comb dead and remaining live lice out of the hair using a fine-toothed comb.
After the initial treatment, check for, comb and remove nits and lice from hair every two to three days. Soak combs and brushes in hot water for 10 minutes.Vacuum the floor and furniture, particularly where the infested person sat or lay.
Courtesy Dr Vishal Rajmal Mehta, specialist paediatrics, RAK Hospital
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
UAE currency: the story behind the money in your pockets
BIGGEST CYBER SECURITY INCIDENTS IN RECENT TIMES
SolarWinds supply chain attack: Came to light in December 2020 but had taken root for several months, compromising major tech companies, governments and its entities
Microsoft Exchange server exploitation: March 2021; attackers used a vulnerability to steal emails
Kaseya attack: July 2021; ransomware hit perpetrated REvil, resulting in severe downtime for more than 1,000 companies
Log4j breach: December 2021; attackers exploited the Java-written code to inflitrate businesses and governments
The specs
Price, base / as tested Dh100,000 (estimate)
Engine 2.4L four-cylinder
Gearbox Nine-speed automatic
Power 184bhp at 6,400rpm
Torque 237Nm at 3,900rpm
Fuel economy, combined 9.4L/100km
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
%3Cp%3EMATA%0D%3Cbr%3EArtist%3A%20M.I.A%0D%3Cbr%3ELabel%3A%20Island%0D%3Cbr%3ERating%3A%203.5%2F5%3C%2Fp%3E%0A
