It is not just the beneficial tax regime and ensuing corporate transactions that drives Russian-related work for
law firms, there has also been an exponential increase in
contentious instructions.
‘The financial crisis brought about a rise in cases
involving Russian or Ukrainian litigants,’ says Yiota
Kythreotou, partner at local firm Pamboridis. ‘We have
seen an increase in parties going to Cyprus to freeze
Russian assets or to register or execute judgements.’
Assets are not usually held in Russia directly, but usually
held in group structures or through a nominee so
Kythreotou has witnessed a number of disclosure orders
being used by Cyprus courts.
Interestingly, Pamboridis invested in the launch of
representative office in London in 2011 to assist UK
clients looking for new ways to efficiently tax-structure
their assets but it could also prove useful on the litigation side too.
‘England has benefited most of all from Eastern
European – and mainly Russian – arbitration and litiga-
tion,’ says Stavros Pavlou, Senior & Managing Partner of
local heavyweight Patrikios Pavlou & Associates LLC. ‘I
heard anecdotally from a London-based lawyer that
approximately 80% of all arbitration happening in the
UK is related to Eastern Europe in general and Russia in
particular. London is often seeking assistance from
Cyprus lawyers to facilitate such arbitrations and we’re
currently involved in 6-7 arbitrations in London with a
Russian or Ukrainian connection.’
However, despite its close relationship with Russia,
the country’s dependence on its business is far from
blinkered, Cyprus has been careful to court other
regional investment possibilities.
CROSSROADS
BVI-based Harneys’ decision to launch on the island
demonstrates the faith being placed in the island’s
growth potential. Already, there are currently approximately 33 foreign banks and over 1200 International
Business Companies with fully-fledged offices in Cyprus,
according to the Cyprus Investment Promotion Agency
