Newsroom
Following a high-stakes meeting of the Presidential Council, optimism is increasing about the Cyprus-Crete electricity interconnection project. Despite tight-lipped negotiations since Tuesday, early reports suggest a deal might be reached by Friday, September 13.
The latest updates, including information from Athens' K, indicate that a final agreement draft was sent to Nicosia late Wednesday, reflecting prior discussions at the Presidential Palace. Both sides appear to have made concessions to bridge gaps, with a significant breakthrough expected soon. The Council of Ministers in Nicosia is scheduled to meet at 4 p.m. on Friday, potentially to finalize the deal.
Key points of convergence include the sharing of geopolitical risks and project costs. The Greek side has agreed to equally share the geopolitical risk, shifting from an initial 37%-63% split favoring Greece. This adjustment follows significant influence from American and Israeli stakeholders. On financial terms, Cyprus will cover €125 million of construction costs over five years from the Pollution Fund, in addition to contributing €100 million to the project’s share capital.
Concerns over geopolitical risk have been addressed with recent interventions from the U.S. and Israel. Greek Foreign Minister George Gerapetritis and the Israeli Energy Minister have both emphasized the project's importance for regional energy security and integration into the European network.
Despite these advancements, some reservations remain in Athens about the Cypriot side's adherence to the new agreement. The Greek Environment and Energy Minister, Theodoros Skylakakis, has also warned of Greece's readiness to abandon the project if a mutually acceptable solution is not found soon.
As the Council of Ministers prepares to meet, all eyes are on the final steps of this critical energy project, which promises to enhance regional energy security and connectivity.
