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A new round of tension has erupted between Athens and Nicosia over the ambitious undersea electricity cable meant to connect Greece, Cyprus, and Israel, known as the GSI Interconnector, after a report suggested Greece’s power grid operator had challenged a funding decision by Cyprus’s energy regulator.
The controversy began on Sunday, when a Cypriot newspaper claimed that Greece’s Independent Power Transmission Operator (IPTO), which oversees the country’s national electricity grid, had filed an objection to the Cyprus Energy Regulatory Authority (CERA). The report said IPTO was seeking recognition of €251 million in costs it had already spent on the project, even though regulators had only approved €25 million for recovery during 2025.
The story quickly sparked an outburst from Cypriot President Nikos Christodoulides, who accused IPTO of trying to pressure Nicosia. “If the head of IPTO thinks the Cypriot government can be blackmailed through letters or paid statements, he clearly doesn’t know who he’s dealing with,” the president said on Sunday morning.
But within hours, IPTO issued a strong denial, calling the newspaper’s report “unverified and inaccurate.” The company insisted it had not demanded immediate payment and accused the media of spreading misinformation.
The uproar prompted a high-level meeting at the Greek Prime Minister’s office on Sunday evening, bringing together Energy Minister Stavros Papastavrou and IPTO executives to discuss the situation.
Speaking on Greek television Monday morning, Papastavrou sought to defuse the tension. “This issue stems from Cyprus’s ongoing doubts about the project’s viability,” he said, stressing that “Greece does not exert pressure; it acts institutionally.” He added that Athens still considers the project crucial for regional energy cooperation but made clear that “for the project to move forward, concerns about its sustainability must be addressed.”
Later that day, President Christodoulides also tried to cool things down, telling reporters in Limassol that relations between Greece and Cyprus “are stronger than ever” and that “anyone hoping for a rift will be disappointed.”
The €1.9 billion GSI project aims to link the electricity grids of Greece, Cyprus, and Israel through a subsea cable, the first of its kind for Cyprus. It’s seen as a major step toward energy independence and green transition but has faced repeated delays and disagreements over costs.
Cyprus’s own Finance Minister, Makis Keravnos, has previously questioned the project’s financial viability, clashing with the island’s Energy Minister, Giorgos Papanastasiou, who remains one of its most vocal supporters.
For now, both governments insist that their partnership remains intact, but with funding disputes, political sensitivities, and technical challenges piling up, the long-awaited interconnection continues to look more like a test of patience than of power.
