Seychelles has ever best relations with Russia

Posted in Business and Economy, Diplomatic missions, International relations, Seychelles offshore jurisdiction at 12:38 pm by Robert Klien

On February 10, 2009, relations between Seychelles and Russia were described as being “at their best” since diplomatic ties between the two countries were established.

This comment was made by outgoing Russian ambassador to Seychelles Alexander Vladimirov after he had paid a final visit to President James Michel and Vice-President Joseph Belmont at State House. He called Seychelles a friend and noted that during its time of hardships the offshore jurisdiction can still rely on Russia for support.

Alexander Vladimirov spent in Seychelles 4 years. He said that during this time, he saw remarkable developments between Seychelles and Russia. He noted that more Russian businessmen have been investing in Seychelles, more Russian tourists have been coming to Seychelles, direct flights from Moscow to Mahe have begun, and more education exchanges have taken place.

At a farewell reception held in his honour at the Coral Strand Hotel, Vladimirov said that his time in Seychelles was a very pleasant chapter in his diplomatic career.

At the reception, Minister for Foreign Affairs Patrick Pillay recalled the great enthusiasm of Ambassador Vladimirov when approaching his posting in Seychelles 4 years ago.


Agreement on green energy signed in Seychelles

Posted in Business and Economy, International Organisations, International relations, Seychelles government, Seychelles offshore jurisdiction at 10:24 am by Robert Klien

On January 19, 2009, the agreement to develop renewable energy including wind and solar power was signed with the Abu Dhabi future energy company Masdar. President James Michel said that this agreement is good for Seychelles.

When President Michel had talks with Dr Sultan Al Jaber, Chief Executive Officer of Masdar, future cooperation between Seychelles and Abu Dhabi was the main focus.

The President addressed the World Energy Summit in Abu Dhabi, United Arab Emirates. He said that Masdar has already done the pre-feasibility work and now it will make a progress towards a full feasibility study.

Masdar is looking at methods to tap wind power in order to generate electricity. Previously, there has been research in Seychelles on renewable energy, but the projects are the 1st major initiatives in this field in Seychelles.

According to Michel, his 2 days at the summit gave him the opportunity to publicise the offshore jurisdiction and to establish contacts with leaders in the renewable energy sector as well as to encourage investment into Seychelles.


Central Bank says inflation will fall

Posted in Business and Economy, Foreign investments, Seychelles banking, Seychelles offshore jurisdiction at 5:50 pm by Robert Klien

The high inflation that hit Seychelles in November 2008 was caused by one-off factors and December figures will most likely show similar trends. Nevertheless, prices in Seychelles are expected to come down soon.

On January 19, Central Bank governor said that inflation figures for December are not yet available. Central Bank governor Pierre Laporte was summing up the main messages at a press conference with Finance Minister Danny Faure and principal secretary in the ministry Ahmed Afif.

According to unofficial indications, generally, December prices remained at the same level as in November. Laporte noted that the reasons for high inflation in November were such factors as the exchange rate depreciation, new taxes (GST), and speculative factors. He also noted that the Central Bank is keeping liquidity tight, so, inflation should start coming down soon.

Laporte said that the Central Bank was aware of the hardship on the population and businesses that were caused by higher interest rates on loans but he noted that they were expected. According to the Central Bank governor, “However, there are indications that the interest rates could have reached its peak as evidenced by more competitive bidding on government treasury bills. With more competition for these securities and inflation likely to start falling soon, interest rates should follow”.

It is important that the higher interest rates could attract more foreign investment to Seychelles, one of the leading offshore jurisdictions of the region.