Newsroom
Negotiators see a potential breakthrough to end the deadlock over the Crete-Cyprus electrical interconnection project, following discussions on Tuesday in Nicosia and continued talks via teleconference on Wednesday.
A clearer picture is expected by Friday. The Greek side remains cautious about whether Cyprus will fully honor the new verbal agreement reached on Tuesday. Efforts were underway Wednesday to formalize the agreement in writing to solidify progress and move the long-delayed project forward.
According to sources, both sides have made concessions. Key issues surrounding geopolitical risks and the recovery of construction costs—estimated at €125 million over five years—were resolved during Tuesday's meeting.
Cyprus has reportedly committed €100 million in equity investment for the Great Sea Interconnector, with the exact share still to be determined. Greece, in turn, has agreed to equally split the geopolitical risk between the two countries (50%-50%), moving away from the initial cross-border agreement’s terms of 37% for Greece and 63% for Cyprus.
This new arrangement addresses Cyprus' concerns about potential costs should the project be halted due to geopolitical or external factors.
Greece remains confident, bolstered by recent U.S. support expressed at the Thessaloniki International Fair, that Turkey will not pose a threat to the project's completion.
As of late Wednesday night, Greece and Cyprus were in continuous contact at both political and technical levels, working to finalize a written agreement. The goal is for this document to be sent to Cyprus by today, allowing the Cypriot Cabinet to approve it, thus enabling the Cyprus Energy Regulatory Authority (RAEK) to take the necessary regulatory steps to ensure the project's viability.
The process is expected to be completed by Friday. Optimism surged after Greek Energy and Environment Minister Theodoros Skylakakis made it clear during Tuesday’s meeting that Greece would not tolerate further delays and was ready to abandon the project if a mutually acceptable solution could not be found.
Meanwhile, Greek Foreign Minister Giorgos Gerapetritis reiterated (on Parapolitika radio) that Athens supports the installation of the GSI cable, primarily because it would end Cyprus' energy isolation. He emphasized that the project is of critical geopolitical importance, adding, "Greece fully trusts this project and will ensure its completion. The notion that it would collapse due to Turkish pressure is pure exaggeration."
Gerapetritis dismissed concerns about the project being blocked by Turkey, highlighting that Greece had not faced opposition during exploratory activities in a contested exclusive economic zone, reaffirming that the project will proceed as planned.
