Newsroom
A multibillion-euro project meant to bring natural gas to Cyprus has been thrown into turmoil, after the European Commission demanded the return of €67 million in funding over alleged irregularities in how the contract was awarded. The move has set off a political firestorm in Nicosia, with ministers scrambling for legal fixes and opposition parties crying foul over possible corruption.
The project, a long-promised natural gas terminal at Vasiliko, has already faced years of delays and cost overruns. Now, Brussels’ funding arm for climate and infrastructure projects (CINEA) has asked for the money back, citing problems in the tender process.
Energy Minister Giorgos Papanastasiou insists the government won’t back down, saying Cyprus will challenge the decision either in court or through the European Ombudsman. He stressed that the project is moving ahead, with consultants assessing gaps and deviations, and a crucial report expected within two months.
Finance Minister Makis Keravnos admitted the issue has raised concern inside his ministry but said authorities are examining all options to safeguard the country’s interests.
At the same time, the European Investment Bank (EIB), which lent money to the project, tried to calm nerves. Vice President Kyriakos Kakouris said there was “no intention” to revoke or suspend the loan and that the bank remains committed to seeing natural gas arrive in Cyprus, calling the project “vital for the economy.”
But opposition lawmakers aren’t buying the reassurances. DISY, the main opposition party, demanded full transparency from the government and said anything improper should be handed to justice. AKEL’s Andreas Pasiourtidis went further, saying he “would be surprised if someone doesn’t go to jail” over what he called a “shocking scandal.” DIKO’s Chrysis Pantelidis accused officials from the previous government of corruption, claiming they “ate money” and wrongfully handed the project to a Chinese consortium, leaving today’s government to clean up the mess.
With Brussels pressing for repayment, legal battles looming, and MPs trading accusations, the fate of the Vasiliko gas terminal is looking more uncertain than ever, even as officials insist Cyprus will one day see the long-awaited arrival of natural gas.
