PAFILIA UPDATE Newsletter SPRING.Indd

update SPRING 2012

CHINA EYES CYPRUS LNG PLANT

China’s third largest national oil company, CNOOC (China National Offshore Oil Corporation) has presented to Cyprus its plans for the construction of an LNG plant to process and export the now confi rmed offshore hydrocarbon reserves. Commerce Minister Praxoulla Antoniadou announced that a senior delegation from CNOOC met on the 02.03.12 with the ad hoc ministerial committee handling energy issues to Dear valued clients and partners, present their views on how to proceed with an LNG terminal in Cyprus. Though not going into detail, the minister said that the government made it clear to the Chinese that the Cypriot state should have control over a possible national oil company. The CNOOC Group is a state-owned oil company, fully owned by the The Spring 2012 edition of Pafi lia update offers a government of the People’s Republic of China. It has become China’s dominant producer of liquefi ed natu- comprehensive overview of the latest news, devel- ral gas in recent years, and is the fi rst company to bring LNG to China, with the completion of its Dapeng LNG Terminal in Guangdong. In June 2005, CNOOC made an all-cash $18.5 billion offer to buy American opments and events on the island. As you will see, oil company Unocal Corporation, topping an earlier bid by ChevronTexaco. It subsequently withdrew its bid, Cyprus is showing strong signs of growth, fuelled citing political tension inside the United States. by the huge gas discovery, government incentive packages and high-value international investments. These exciting developments coupled with Pafi lia’s highly attractive current property prices offer the perfect time to invest.

CHINA EYES CYPRUS LNG PLANT CYPRUS COULD BECOME ENERGY BRIDGE - WORLD’S LONGEST POWER CABLE PLANNED TO REAP GAS RICHES

SECOND LICENSING ROUND Last month, Cyprus launched a second licensing round for 12 blocks in its offshore Exclusive Economic CHINESE LARNACA Zone, excluding the prospect in which Noble tapped a sizeable reserve last year. Interior Minister Neoklis Silikiotis announced that the effi cient establishment of a national oil company is a high priority for the AIRPORT INVESTMENT government, adding that several companies have expressed an interest in the licensing round. He went on to say “we shall set up a corporation which will be the strategic partner of all the companies and will be involved in matters of local infrastructure as well as the distribution of natural gas to the world mar- SIGNED ket.” The Cypriot delegation presented the second licensing round during APPEX (American Association of Petroleum Geologists Prospect and Property Expo) which took place in London between the 6th and 8th March 2012. In addition, Foreign Minister Erato Kozakou-Markoullis visited Norway on the 5th March for offi cial talks with Norway’s State Secretary Mr. Per Rune Henriksen at the Ministry of Petroleum and Energy regarding a possible cooperation in the fi eld of hydrocarbons.

TITLE DEED ISSUANCE

Pafi lia is pleased to announce that it will issue title deeds for all properties on Alithea, Konia Gardens, Tala Gardens and Melissa Villas this March. CYPRUS COULD BECOME ENERGY BRIDGE

WORLD’S LONGEST POWER CABLE PLANNED TO REAP GAS RICHES

Israel and Cyprus began a feasibility study on 04.03.12 for the construction of an underwater electric cable between the two countries that could ensure their energy security and offer Israel a channel to export energy to Europe.The Israel-Cyrpus leg, with an estimated cost of half a billion euros ($660 million), would eventually be part of a much longer cable continuing to Greece and from there to the pan-European electricity grid. If approved, the EuroAsia Interconnector will stretch 1,000 kilometers (600 miles) in total at a maximum depth of 2,000 meters, making it the most ambi- tious project ever of its kind, said Nasos Ktorides, chairman of DEH Quantum Energy. Ktorides signed a memorandum of understanding in Jerusalem with his partner, state-owned Israel Electric Corp (IEC), to begin the feasibility study that should be completed by year end. The cable itself will take three years to build. Quantum En- ergy is comprised of Greece’s PPC, Cyprus’s Quantum Energy and Bank of Cyprus. Israel Energy Minister Uzi Landau has promoted building the submarine cable that will carry 2,000 megawatts in both directions, allowing Israel to sell electricity when production is high and have a back-up when reserves drop.

CHINESE LARNACA AIRPORT INVESTMENT

Hermes Airports Ltd, the consortium operating and managing Cyprus’ two airports, has confirmed reports that it is negotiating a sizeable investment with an undisclosed Chinese company pertaining to the construction of exhibition showrooms and a logistical service centre at the old Larnaca airport building. Airports’ spokesman Adamos Aspris, announced that the consortium has signed a memorandum of understanding with the Chinese company following months of “discreet talks”. The MoU will “pave the way for more substantive talks” between the two parties, with a view to achieving “one of the largest investments ever made in our country,” commented Aspris. Adding, the Chinese company’s proposal involves the creation of a large commercial showroom for Chinese products as well as a logistical services centre. “The logistical centre will be based at the old Larnaca airport, and will constitute the bridge linking China to Europe, Africa and the Middle East”. The value of the investment is rumoured to be in the region of €1 billion. The project is expected to create hundreds of jobs and increase visitors to the island, including the managerial staff of the companies showcasing their products. Larnaca Mayor Andreas Louroudjiatis welcomed the news, commenting “the old airport area definitely needs to be developed and it can contribute to the town’s growth”. He also commented, that the Larnaca munici- pality is ready to help in all ways possible to reach a positive conclusion, including easy procedures to settle legal aspects. “This is why we created a specific committee at the municipal council that involves promoting investments,” Louroudjiatis explained. “We want to send out the message that it is time for Larnaca to achieve the growth that it deserves.”

NEW FLIGHTS RUSSIAN DUMA FROM RUSSIA RATIFIES THE The Cyprus Tourism Organisation (C.T.O) has announced that seven additional Russian airports, Perm, Arkhangelsk, Kemerovo, Tyumen, Chelyabinsk, Omsk CYPRUS-RUSSIA and Nizhny Novgorod, will commence flights to Cyprus during 2012. Nine other Russian federation airports, Moscow, Saint Petersburg, Yekaterinburg, Ufa, Rostov, Novosibirsk, Kazan, Krasnoyarsk and Samara, already operate flights to the island. The 16 cities are located on both European Russia and Asian PROTOCOL Russia’s West Siberian plain, and include some of the most populous cities in the region. Head of the Cyprus Tourism Organisation, Alecos Orountiotis, The Cyprus Investment Promotion Agency (CIPA) welcomed the ratification commented that “the Russian market is a major priority for us”, continuing, of the amending Protocol to the Cyprus-Russia Double Tax Treaty of 1998, “we hope to have over 400,000 tourists from Russia in 2012”. The Russian which removes Cyprus from the so-called Russian “black” list. The ratifica- market accounts for the second largest number of tourists arrivals to Cyprus, tion, which was announced on 15th of February 2012 by Russia’s State Duma, with the largest market remaining the UK. will become effective from 1st January 2013. This positive development cre- ates new opportunities for Russian investors for the use of Cyprus companies and funds as a gateway to Europe, Asia and Africa. The signed protocol will help Cyprus to attract new Russian outbound investments, while pro- viding substantial business benefits to its existing Russian investors. CIPA highlighted that Russia maintains the top position in the list of countries with foreign investments in Cyprus. The ratified agreement highlights a very attractive infrastructure and favorable pre-conditions for collaboration with international companies originating from Russia. The Cyprus Investment Promotion Agency announced that it will continue its efforts in actively sup- porting similar initiatives, which will further improve the business environ- ment of Cyprus and enhance the overall image to attract foreign direct investments. CANADA’S TRIPLE FIVE CONSIDERS INVESTMENT IN CYPRUS BANKING, PLANS ENERGY AND TOURSIM TO EASE Triple Five Group, a finance and development company, is considering investing in Cyprus, said Nader Ghermezian, chairman of the Canadian firm. The group, which owns Peoples Trust, a Vancouver-based Bank, may invest an unspecified amount in energy, tourism, banking and government bonds, Ghermezian told reporters in Nicosia on 14.03.12. According to press reports, negotiations have INVESTMENT reached an advanced stage and representatives of the company will finalise de- tails of the scope of its investment within days. With respect to banking, there “are three options for us,” which include opening a branch of its bank on the east Mediterranean island, opening a new bank, or “to make an arrangement with a REGULATIONS local bank so that we can bring more investment” to Cyprus, Ghermezian said. The chairman of Triple Five commented that the group is already in talks with Plans to turn the Cyprus Investment Promotion Agency (CIPA) into a ‘one-stop-shop’ the Central Bank of Cyprus, which is in charge of issuing banking licenses. His with the aim of bypassing bureaucracy and making it easier for foreigners to invest in the group may contribute to the development of the energy industry of Cyprus, which announced in December its first natural gas discovery. island in order to increase overall investments, have advanced, with President Demetris Christofias announcing that he will promote the proposal to the cabinet during March.

CIPA Chairman Christodoulos Angastiniotis, explained, our goal is to combat bureaucracy and make Cyprus’ procedures in licensing and serving foreign investors easier, commenting “we are looking forward to a cabinet decision that will give CIPA the ability to manage, in cooperation with the other state authorities but also with CIPA having a coordinating role, the procedures to serve foreign investors,”. He continued, “we are in agreement with the president on what must happen, but the final proposal and wording will be formed in the next one or two weeks”. Angastiniotis said that CIPA’s proposal will not be regulated into law, just implemented as a cabinet ruling. Government Spokesman Stefanos Stefanou, said the president has underlined the need for Cyprus to continuously upgrade its efforts, with the final goal of turning it into an investment centre, commenting “we are pleased to say there has been increased activity and increased interest from foreign investors in Cyprus, especially following recent confirmation of the existence of natural gas resources,”. He added that, the increase is also due to the trust shown by foreign investors in Cyprus’ economy, which is supported by solid foundations.

Cyprus president Dimitris Christofias, right, shakes hands with Nader Ghermezian, chairman of Triple Five, at the presidential palace in Nicosia, Cyprus, Wednesday, March 14, 2012. Nader Ghermezian, Chairman of Triple Five called Cyprus “one of the best countries in the world today to invest in..”

WINGS OF DANCE BALLET 20 & 21 JULY, 2012 LIMASSOL MUNICIPAL GARDEN THEATRE

Cyprus has a rich and diversified calendar of cultural events taking place across the island. For the first time in Cyprus, leading soloists from eight of the most prestigious ballet companies in the world, including dancers from the United States, Belgium, Russia, Ukraine, Spain and Canada will participate in the premiere “Wings of Dance”. The show will be a combination of classical great ballet pieces, including Romeo and Juliette, The Walpurgis night, Swan Lake, The Dying Swan, Giselle, Le Corsaire and Don-Quixote.

Performers will include: NATALIA KRAPIVINA, Principal, Moscow Stanislavsky Ballet Theatre, Russia NADEZHDA GONCHAR, Soloist, Mariinsky Ballet Company, St. Petersburg, Russia NANDITA SHANKARDASS, Soloist, Compania Nacional de Danza, Madrid, Spain TETYANA LOZOVA, Soloist, Ballet of National Opera of Ukraine, Kiev OLGA PRIKHODTSEVA, Dancer, Director of “Wings of Dance”, Colorado Ballet, Denver, USA DMITRI DOVGOSELETS, Soloist, Canada’s Royal Winnipeg Ballet SERGEI SIDORSKY, Soloist, Ballet of National Opera of Ukraine, Kiev VIACHESLAV BUCHKOVSKIY, Principal, Director of “Wings of Dance”, Colorado Ballet, Denver, USA YEVGEN UZLENKOV, Soloist, Corella Ballet, Madrid, Spain CAITLIN VALENTINE-ELLIS, Soloist, Colorado Ballet, Denver, USA GEORGIY SMILEVSKIY, Principal, Moscow Stanislavsky Ballet Theatre, Russia YEVGENIY KOLESNIK, Soloist, Royal Ballet of Flanders, Antwerp, Belgium PAFILIA TITLE DEED PAFILIA ANNUAL ISSUANCE STAFF DINNER

Pafilia is pleased to announce that it will issue title deeds for all properties on Pafilia held its annual staff dinner at its recently opened Minthis Hills clubhouse the following developments this March during February.

TALA GARDENS ALITHEA

MELISSA VILLAS KONIA GARDENS VILLAS PAFILIA TO ABSORB VAT INCREASE Evangelia Eliadou, Executive Director of Pafilia has announced that Pafilia has decided to absorb the recent vat increase until the end of 2012, enabling clients to save an additional 2% off property prices.

PROPERTY OF THE MONTH

• 150 metres from a beautiful sandy beach PINE SEA VIEW VILLAS VILLA 12 • Private guest suite • Large overflow pool, sun terrace, BBQ area, and gardens 3 BEDROOM DETACHED VILLA • Open plan living/dining area NOW €680,000 incl. VAT • Beautiful sea and mountain views With an evergreen pine forest as its backdrop, orchards on either side and stunning • Contemporary design with luxury specifications panoramic coastal views to the front, this exclusive villa enjoys an unequalled posi- • Five minutes away from Polis tion.

IN BRIEF • Type – Detached villa • Beds – 3 double (2 ensuite) & 1 guest • Size – 168.36m sq • Plot – 943.86m sq • Pool - 1 overflow • Status – ready MINTHIS HILLS TO HOST THE CYPRUS MEN’S CONGRATULATIONS TO MARIOS! AMATEUR OPEN 2012 Minthis Hills Head Chef Marios Karayiannis was awarded the silver medal for ‘Chef of The Year 2012’ at the recent Mediterranean Culinary Challenge, in association with The three day open, which is a counting event for R&A’s WAGR (World Amateur the World Association of Chefs Societies. Golf Rankings), will be held between 20th and 22nd April, with the overall winner receiving the title ‘Cyprus Open Champion 2012’. Registration and practice will take place on April 19th.

PAFILIA INTERNAL FINANCE SCHEME!

The Pafi lia internal fi nancing scheme, which is available on all ready properties, enables clients to borrow up to 50% of the property value. Addition ally, clients are able to take delivery of the property once a 50% personal contribution has been paid. The borrowed amount is sub- ject to a fi xed interest rate of 6.5%, capitalised every six months, and is repayable in monthly or quarterly instalments over a fi ve year peri- od. Clients benefi t from many sav ings, such as no loan arrangement fees, saving up to 2.5% of the property value (mortgage fees are 1% and arrangement fees 1.5% of the property value), no life insurance requirements (saving up to 0.075% per month on the loan balance) and no early settle ment fees.

HEAD OFFICE MOSCOW ST. PETERSBURG UKRAINE Pafi lia Property Developers Ltd World Trade Center Aptekarskaya Embankment 56 Bohdana Khmelnitskogo Street Pafi lia House Krasnopresnenskaia 20a, Offi ce 225 Kyiv, 01030, Ukraine 33 Nicodemou Mylona Street Marina Court Naberezhnaia 12 197022 St. Petersburg, Russia Tel: +380 44 200-25-00 P.O. Box 60159 Pod’ezd 6, Offi ce 1032 Tel: +7 (812) 680 2888 Mobile: +38 05038 5555 8 8101 Pafos, Cyprus 123610 Moscow, Russia Fax: +7 (812) 680 2889 Fax: +380 44 200-25-01 T: +357 26 848 800 F: +357 26 934 910 Tel/Fax: +7 (495) 258 1970/71 Email: s.zelenyak@pafi lia.com n.makarov@pafi lia.com Cyprus Freephone: 8000 8989 Freephone: 8 800 700 8686 www.pafi lia.ru www.pafi lia.com.ua E: info@pafi lia.com Email: russia@pafi lia.com www.minthishills.ru www.pafi lia.com www.pafi lia.ru www.minthishills.com www.minthishills.ru