The EU Presidency Flys the Cypriot Flag. Cyprus’ GDP Is Under the Irrigation of the Maritime Cluster
By Cyprus has held the Presidency of the European Union since January 1, 2026, and intends to use it to strengthen its maritime presence. The country also intends to use the Presidency to address significant challenges facing the shipping industry. Among the most important are ensuring the supply of highly qualified personnel to the merchant navy, improving seafarer skills, and promoting gender equality in maritime professions.
Over the past two years, the Cypriot flag has continued to demonstrate resilience to the turbulence in maritime transport and exceptionally strong revenue growth. Cyprus recorded a 20% increase in the gross tonnage of registered ships, the highest level in the last 20 years.
This is thanks to the expansion of services in global markets and initiatives aimed at strengthening relationships with shipowners. The number of companies registered under the Cypriot tonnage tax system increased by 15% between 2023 and 2024, and the ship management sector’s contribution to Cyprus’s gross domestic product (GDP) increased by 27%. Maintaining the competitiveness of the Cypriot maritime cluster was a priority for decision-makers in 2025.
“The government’s priority is to further improve the competitiveness of Cypriot shipping. We are fully committed to further modernizing and strengthening the regulatory framework for services provided by the Deputy Ministry of Shipping,” said President of the Republic of Cyprus, Niκos Christodoulides, in his opening speech at the “Maritime Cyprus 2025” conference in Limassol.
In 2026, the effects of the country’s consistent maritime policy, supported by the Minister of Finance, the Bank of Cyprus, ministers from virtually all ministries, and members of parliament, will also be visible. This was evident in the reception of information on the Cyprus Maritime Strategy, which the Deputy Ministry of Shipping recently presented to Cypriot parliamentarians. The 2026 budget is expected to achieve a surplus, with expenditures of €18.7 million and revenues of €20.3 million planned for this year.
A Profitable Maritime Registry
During a meeting of the Parliamentary Finance Committee, Director General Stelios Chimonas informed members of Parliament that the Cypriot registry had grown by approximately 20% since September 2023, and the number of companies paying tonnage tax had increased by 4.5%. Based on this, a 4% increase in revenues was planned for 2026 compared to the 2025 budget. Stelios Chimonas emphasized that this “reflects the effectiveness of the strategies implemented to strengthen the Cypriot registry,” reports the Kathimerini daily.
The Cypriot registry has borne the brunt of the EU’s continued sanctions on vessels carrying Russian crude oil. Chimonas told members that despite these setbacks, the registry’s effectiveness and reputation are steadily improving. He reported that losses resulting from the withdrawal of Russian-linked vessels have already been compensated, and the registry remains strong. In response to Akel MP Christos Christofides, he confirmed that the damage caused to the Cypriot registry by the withdrawal of ships, primarily tankers, following the imposition of EU sanctions on Russia, has now been repaired.
Turkish retaliation is also impacting the Cypriot registry’s operations. Referring to the Turkish embargo, Chimonas explained that the financial impact of Turkey’s actions cannot be precisely estimated. According to the deputy minister, these are “lost profits” resulting from the fact that companies cooperating with Turkish ports are restricted from registering under the Cypriot flag. He explained that the ministry is currently focusing on cooperation with shipowners and shipyards that do not operate in Turkish ports.
“These actions have yielded results and limited the negative effects of the Turkish embargo,” Stelios Chimonas told MPs, according to the Kathimerini daily.
The Cyprus Registry has allocated significant funds for the international promotion of the flag and participation in EU and global maritime forums. The Ministry announced that Cyprus will maintain its annual contributions to the International Maritime Organization (IMO) and cover representation costs to ensure the country’s visibility and active participation in international forums.
The Cypriot Deputy Ministry of Shipping employs 155 people, including 94 women and 61 men. Maritime policy is implemented through three administrations, six maritime shipping offices abroad, and 29 departments and services. The mission of the Cypriot Maritime Ministry “is the sustainable development of Cyprus as a maritime state, strengthening both the economy and the international position of the Republic of Cyprus.”
It strongly aims to ensure that “Cyprus becomes a key and influential player in shaping global maritime policy, a modern, sustainable, and competitive shipping center striving for excellence.” The plan presented to MPs outlines the ministry’s key activities, including: from “modernizing shipping regulations and promoting investments, to maritime education, environmental protection and implementing an international shipping strategy.”
Maritime Pillars of Growth
The Deputy Ministry announced that “in practice, the priorities for 2026 are based on three strategic pillars: strengthening the competitiveness and quality of the Cypriot registry, developing the national maritime ecosystem, and increasing operational efficiency through IT transformation and improving employment.”
Nearly €9.9 million is planned for these tasks in 2026. €2.61 million has been allocated for the operation and international strengthening of the registry. The Cypriot government will spend €6.05 million on the maritime ecosystem, and €1.2 million on modernizing the administration and developing digitalization. The Maritime Economy Development Plan pays particular attention to increasing resilience to destabilizing activities. It states that “Cyprus continues to grapple with geopolitical instability, EU sanctions against Russia, the ongoing Turkish embargo, environmental pressure, and rapid technological change.”
The President emphasized that the digitalization of the services of the Deputy Ministry of Shipping is steadily progressing: “I am very pleased to announce today that we are ready to launch the first services next week.” One of the government’s main goals, the qualitative and further strengthening of the Cypriot Shipping Register, has been achieved, said President Niκos Christodoulides.
– During “Maritime Cyprus 2025” in Limassol, President Christodoulides emphasized that the advanced digitalization of the Cyprus Register’s services is “largely due to the strengthened cooperation we have achieved with the shipping community in Greece and shipping companies based in Cyprus, as well as the decisive support of Cypriot shipowners,” reports the Shipping Telegraph.
– The President explained that the shipping cluster encompasses not only shipowners and ship management companies, but also all companies offering similar services in this sector, noting that these companies consistently choose Cyprus as a country to operate in. “Strengthening the shipping cluster in Cyprus is therefore our priority, and thanks to policies such as the digitalization of services provided, as well as strengthening others, such as a comprehensive shipping center, we are confident that we will succeed in making Cyprus one of the most attractive destinations for these companies,” emphasized the President of Cyprus.
Referring to Cyprus’s upcoming Presidency of the Council of the European Union (EU) from January 1, 2026, during “Maritime Cyprus 2025,” the President of Cyprus said that “this is undoubtedly a national mission, which I am absolutely convinced we will successfully accomplish.” He emphasized that shipping will be one of the most important priorities of the Cypriot Presidency, especially since the European Commission is expected to present its proposal for a new EU maritime industry strategy, which will be discussed during the Cypriot Presidency.
Christodoulides emphasized that one of Cyprus’s important tasks during the EU Presidency will be to address the challenges facing the shipping industry. These include the shortage of merchant navy officers, the need to retrain and upskill seafarers, and promoting gender equality in maritime professions. He announced that a declaration on this matter is expected to be adopted at the informal meeting of the Council of Ministers for Maritime Transport, which will be held in Cyprus in April 2026.
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