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A crucial meeting in Nicosia on Tuesday hopes to resolve months of tensions surrounding the Israel-Cyprus-Crete electricity interconnection project which is a key energy link between Europe and the Mediterranean according to a report by Apostolos Tomaras in this Sunday's Kathimerini. The project, designed to diversify Cyprus' energy supply, has been delayed repeatedly, leading to strained relations between Cyprus and Greece. Concerns include financial obligations, geopolitical risks, and whether the project will ultimately lower electricity prices for Cypriot consumers.
Tensions have been mounting between the two countries over the past three months, with Cyprus expressing unease about cost distribution, project completion risks, and pressure from the Greek Project Implementing Entity, ADMIE. Greek Prime Minister Kyriakos Mitsotakis reportedly intervened to calm the situation, following ADMIE’s frustration over project delays and a potential breakdown in cooperation with Cyprus.
The meeting follows an agreement in principle reached last week, under which Cyprus would contribute €25 million annually for five years from its Pollution Fund to support the project. However, concerns about geopolitical risks, particularly Turkey’s potential interference, remain unresolved and are expected to be a major topic of discussion.
Historical strains resurface
This is not the first time energy issues have tested Greece-Cyprus relations. During former Cypriot President Nicos Anastasiades' term, Greece's unilateral decision to take over part of a previous interconnection project caused significant diplomatic friction. Today’s mistrust reflects deeper tensions in the energy cooperation between the two countries.
Geopolitical stakes and project uncertainty
Geopolitical risks loom large, with Cyprus worried about Turkey’s impact on the project's completion. Meanwhile, France’s NEXANS, the company involved in cable construction, has issued warnings to ADMIE, raising further questions about the project's future. NEXANS’ involvement is also significant due to its strategic footprint in the Eastern Mediterranean, and the outcome of Tuesday’s talks may influence its role in the project.
Domestic political debate in Cyprus
In Cyprus, the project has become a hot-button political issue. Parties such as AKEL and DIKO have criticized its handling, while the ruling Democratic Rally (DISY) has called on the government to push forward. A letter from the Speaker of the House, Anita Demetriou, to the President sparked controversy within Cyprus' political circles, adding to the tensions. Prominent political figures like Averof Neophytou have publicly questioned the benefits of the project, specifically whether it will reduce electricity costs, which has only intensified the public debate.
Looking ahead
As the parties gather, the stakes are high not just for the success of the energy project but for the broader relationship between Athens and Nicosia. While there is cautious optimism, lingering mistrust and unresolved financial and geopolitical concerns make Tuesday’s meeting critical for the future of the Israel-Cyprus-Crete interconnection.
