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Economic Shifts on the Horizon: How a Ukraine Peace Deal Could Impact Cyprus

Published January 4, 2026, 20:15

The nearly four-year-long Russia-Ukraine war continues to shape the global economy. With a peace agreement potentially on the horizon, following intervention from Trump, the economy worldwide will need to adjust to new realities. A resolution and gradual lifting of sanctions are expected to have a positive impact on global trade, investment, and the food market, as Ukraine regains its export capacity in grain. However, the potential intervention of Donald Trump and the imposition of tariffs on Chinese products by Europe could have negative consequences, particularly for Cyprus, which imports a significant amount of goods from China. Economist Tasos Yiasemidis points out that the normalization of relations will create a better investment and energy climate, benefiting Cyprus. He also emphasizes the need for Europe to play a clear role in the solution, as Trump may seek to use it to strike at China. Regarding Russian investors in Cyprus, there is a possibility of a gradual return of some Russian organizations or companies. Ultimately, it is crucial to examine the parameters of any peace agreement so that the Cypriot economy can capitalize on the opportunities that arise.