The viability of the Great Sea Interconnector (GSI) project has been thrown into question after statements by Cyprus Finance Minister Makis Keravnos triggered strong reactions in Athens.
Split within Cypriot government
Keravnos has publicly doubted the project’s viability, citing two independent studies, while Energy Minister George Papanastasiou continues to defend the interconnector. The split has put pressure on President Nikos Christodoulides to clarify the government’s position.
Christodoulides reiterated that the interconnection is of strategic importance for Cyprus but stressed that its viability depends on the Greek transmission system operator ADMIE fulfilling specific commitments, such as transferring assets to the GSI. Notably, the President avoided directly challenging the finance minister or explicitly backing the energy minister.
European Prosecutor investigates
Adding further uncertainty, the European Public Prosecutor’s Office has opened a criminal investigation into the project following complaints in both Cyprus and Greece. The inquiry is examining whether EU funds allocated since 2013 were used exclusively for project-related contracts. Payments under scrutiny include transfers to EuroAsia Interconnector, Nexans, and part of the €657 million EU grant.
A critical sticking point remains Cyprus’ failure to release its first €25 million tranche to ADMIE, despite approval from the national regulator RAEK. Athens has warned that the cost burden cannot fall solely on Greek taxpayers and is pressing for a clear cost-sharing framework.
Research and geopolitical tensions
Greece insists it will resume seabed surveys to lay the undersea cable, despite Turkish objections in international waters. For Athens, the project is not only about energy but also about exercising sovereign rights in the region.
In Nicosia, some observers argue that delays are being used as leverage for more favourable participation terms. Others criticise pressure from renewable energy interests, who reportedly see the interconnector as a competitor.
Calls from Athens
Greek Deputy Prime Minister Kostis Hatzidakis and Energy Minister Stavros Papastavrou have called on Cyprus to clarify its stance, highlighting the project’s strategic importance and recent RAEK decisions. The matter is also expected to feature at the informal Council of Energy Ministers, with Cyprus represented by Deputy Minister Nikos Tsafos.
What remains to be decided
- Whether Cyprus will release the €25 million tranche to ADMIE.
- Whether the Presidential Palace will issue a clear political line ahead of possible cabinet reshuffles.
- How the European Prosecutor’s investigation will affect funding and timelines.
- To what extent geopolitics, especially Turkish reactions, will influence technical and financial decisions.
Overall outlook
The Great Sea Interconnector remains a project “on a tightrope”: vital for ending Cyprus’ energy isolation and for regional architecture, but caught between financial doubts, internal political tensions, and geopolitical risks. Without swift clarification from Nicosia and resolution of pending issues with ADMIE, a new rift in Athens–Nicosia relations is considered likely.
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