Kyiv – On 10 April, DLA Piper Ukraine gathered representatives of business for a hot topic discussion: "Cyprus: Crush Test". The discussion was in the form of a business breakfast in one of Kyiv restaurants. What made the event unique for its guests is the fact that the special invited speaker was Pavlos Aristodemou, Partner of Cyprus Office of Harneys, an international law firm.

In the course of the discussion, Mr. Aristodemou told about anti-crisis measures taken in Cyprus and the changes that occurred in the country's banking regulation and taxation situation. Svitlana Musienko, Partner and Head of Tax, DLA Piper (Ukraine), moderated the event and spoke about possible consequences of the Cyprus current situation for business. Illya Sverdlov, Legal Director, Tax, continued the discussion on the options of restructuring of Cyprus companies and possibilities to use other jurisdictions for holding, financial, licensing companies, and touched upon the issues of entry into force of a new tax treaty between Ukraine and Cyprus. Illya Muchnyk, Legal Director, Finance and Projects, covered possible consequences of currency controls introduced in Cyprus on financial transactions involving Cyprus companies. Further, he also told about the strategies that could be used with regard to the loan funds borrowed by Ukrainian groups from international creditors through affiliated Cyprus companies, as well as possible remedies for affected investors.

Svitlana Musienko comments: "Without doubt, reputation of Cyprus is materially damaged. Cyprus ceased to be an obvious answer to the question where to have a holding and where to conclude transactions. Many businesses are actively considering alternative jurisdictions. However, depending on the circumstances and subject to taking relevant measures, the Cyprus option may still be acceptable. In any case, decisions to move corporate structures away from Cyprus should not be made impulsively or in haste. All pros and cons should be weighed first".