Cypriot minister warns difficult yrs for Cyprus, EU due to Ukraine crisis

Cypriot Minister of Finance Constantinos Petrides on Monday said the next few years would be difficult for Cyprus and the entire European Union (EU).

He warned that growth in the EU will be impaired in the coming years, partly because prosperity in Europe in recent years had been largely a result of relatively low energy prices.

The conflict in Ukraine has been fueling inflation, mostly through growing fuel and food prices.

Provisional figures released last week by Eurostat showed that inflation in Cyprus rose by 8.6 percent in April on a yearly basis, 2.4 points higher than the increase in March.

Prices of petroleum products grew more than 30 percent after the start of the conflict in Ukraine, while electricity and agricultural product prices increased by over 22 percent and 20 percent, respectively.

Cyprus, as a member of the European Union (EU), has adopted all sanctions imposed by the bloc against Russia. Previously the country had had extensive financial and commercial relations with Russia, including the import of large quantities of oil and grains.