The Great Sea Interconnector (GSI) project, a major electrical link planned between Greece, Cyprus, and Israel is facing a new and significant crisis, straining relations between Athens and Nicosia. The situation escalated after Cypriot President Nikos Christodoulides announced a criminal investigation into the project by the European Public Prosecutor’s Office (EPPO).
President Christodoulides, while affirming the project’s strategic importance, stated that its viability depends on the Greek implementing body, IPTO. He then revealed that the EPPO had launched a criminal investigation into potential misconduct related to the project. While he stressed there were “no differences” with the Greek government, he underscored IPTO’s obligations.
Athens responded by stating that it had not received any complaint from the EPPO and would seek further information from Cyprus.
Financial disputes compound the legal issues. Cypriot Finance Minister Makis Keravnos signaled that he would not approve the release of a planned €25 million payment to IPTO for 2025. Keravnos cited two independent studies that concluded the project was not viable under current conditions.
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Greece calls on Cyprus to clarify its position on the project
This stance drew a sharp reaction from the Greek Deputy Prime Minister, Kostis Hatzidakis, who called on Cyprus to clarify its position, noting that the GSI is a “European priority,” not just a Greek national project.
Greek Environment and Energy Minister Stavros Papastavrou affirmed Greece’s “clear and consistent commitment” to the project, which is co-financed by the European Union. Speaking to state broadcaster ERT, Papastavrou said Keravnos’ statements send “an ambiguous message” and questioned why feasibility studies cited by the Cypriot Minister had not been shared with Athens. “It is imperative that Cyprus clarify its position,” Papastavrou added.
Foreign Minister of Greece Giorgos Gerapetritis sent a message to Ankara warning of “consequences” if any third country attempts to obstruct the project. He affirmed that surveys were complete and cable laying would continue, emphasizing the project’s importance in ending Cyprus’s energy isolation.
The tension has been building for months as Nicosia deliberated on whether to pay the annual €25 million to IPTO, a regulated revenue for the Cypriot part of the project. While the Cyprus Energy Regulatory Authority (CERA) had approved the recovery of the funds, their final disbursement required political approval from the Cypriot government.
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