Cypriot President Nicos Christodoulides has hailed the recent two-notch credit rating upgrade from Moody’s, describing it as a significant step for the country’s economic future. The rating agency raised Cyprus’s credit rating from Baa2 to A3, marking the island’s return to the “A” investment category for the first time since 2011, when the country was hit by a financial crisis and bailout interventions from the EU and the IMF.

In its assessment, Moody’s highlighted Cyprus’s substantial progress in improving its fiscal metrics and public debt. The credit agency noted that the country’s public debt ratio has seen a marked reduction from the high levels recorded in 2020, positioning Cyprus among the global leaders in debt reduction. Moody’s anticipates further declines in debt ratios over the medium term, contributing to a continued strengthening of public debt sustainability.

The upgrade also reflects solid economic growth, driven by expanding service sectors, including those related to corporate relocations, foreign direct investment (FDI), and reforms under Cyprus’s National Recovery and Resilience Plan (NRRP). Moody’s also acknowledged that the country’s banking sector has been stabilizing, with risks “contained” due to the ongoing deleveraging process and significant improvements in the credit profile of Cypriot banks.

President Christodoulides expressed pride in the achievement, emphasizing the importance of the upgrade for Cyprus’s economic trajectory. In a video statement shared on social media, he stated, “Today’s exceptionally important double-upgrade by Moody’s Rating Agency is a vote of confidence in the policies of the government and the economy of our country.” He credited the positive result to responsible fiscal policies, financial sector stability, and ongoing reforms, all of which are central to his administration’s agenda.

The President also noted that the upgrade would likely lead to increased foreign investment, the creation of new jobs, and a more dynamic economic growth outlook for Cyprus. “The new upgrade paves the way for significant prospects, while enhancing the attraction of quality investments that contribute to the creation of new jobs, as well as to the government’s efforts to establish our country as a reliable and quality investment destination,” Christodoulides added.

Cyprus’s improved credit rating and the resulting investor confidence signal a bright future for the nation, with strengthened competitiveness and continued focus on policies aimed at enhancing the standard of living for its citizens.

Russia has supplied North Korea with over a million barrels of oil since March 2024, a significant breach of UN sanctions, according to new satellite imagery analysis from the UK-based Open Source Centre. The oil is believed to be exchanged for weapons and troops sent by Pyongyang to support Russia’s war in Ukraine, experts and UK officials say.

The satellite images, shared exclusively with the BBC, show North Korean oil tankers making 43 trips to Russia’s Far East oil terminal over the past eight months. The tankers, often seen arriving empty and departing full, have been tracked by the Open Source Centre, which estimates that the transfers have provided North Korea with more than double the UN-imposed annual oil cap of 500,000 barrels. The cap, intended to limit North Korea’s fuel supply to prevent further development of its nuclear program, has been consistently violated by Russia.

The first documented oil transfer occurred on March 7, 2024, following reports that North Korea had been supplying weapons to Russia. These shipments have continued amid reports that thousands of North Korean troops are being deployed to fight alongside Russian forces, with the most recent transfer recorded in early November.

Experts, including Joe Byrne from the Open Source Centre, emphasize that these illicit oil shipments offer North Korea a much-needed lifeline, stabilizing the country’s economy. “This steady flow of oil gives North Korea a level of stability it hasn’t had since sanctions were introduced,” Byrne says. Hugh Griffiths, a former UN sanctions panel leader, argues that these transfers are “fueling Putin’s war machine”—a trade of oil for missiles, artillery, and soldiers.

North Korea, the only country in the world banned from buying oil on the open market, relies heavily on illicit oil to meet its needs. The country consumes around nine million barrels of refined petroleum annually, far exceeding the 500,000 barrels allowed under UN sanctions. Historically, it has resorted to risky ship-to-ship transfers to obtain fuel, but the recent direct oil shipments from Russia offer a more reliable and possibly free source of oil.

While Russia has not responded to requests for comment, the continued oil transfers and growing military ties between Moscow and Pyongyang suggest a significant shift in global dynamics. The United Nations, however, faces mounting challenges in enforcing sanctions, particularly after Russia’s veto in March 2024 led to the disbandment of the UN sanctions panel monitoring North Korean violations.

These developments raise concerns about the increasing cooperation between Russia and North Korea, with both regimes seemingly ignoring international law. Experts warn that this alliance could have dangerous implications, including the potential sharing of military technology that could further destabilize the global security landscape. As tensions rise, officials in South Korea and the US are closely monitoring the situation, with some experts fearing that North Korea’s increasing leverage could lead to even more dangerous military collaborations.