Cyprus Touted as a Stable Investment Haven
In the bustling corridors of a New York business conference, Cyprus’s Commerce Minister George Papanastasiou championed the island as a reliable business centre. He emphasized Cyprus’s stability and its legal system’s close ties to the trusted English law, offering a secure environment for investors seeking services, contacts, and legal counsel.
Highlighting the strategic significance of the Eastern Mediterranean region, Papanastasiou pointed out its potential role in bolstering Europe’s energy security. A key part of this strategy is the Great Sea Interconnector, an ambitious project aimed at linking the electricity grids of Cyprus, Greece, and Israel. This interconnection is seen as a step towards reducing Europe’s reliance on Russian gas.
However, the project has encountered some turbulence. Greek Energy Minister Theodoros Skylakakis recently expressed concerns over missed deadlines that could jeopardize European Commission funding and an additional €100 million from the European Union’s Recovery and Resilience Facility. The Cypriot government is still deliberating conditions, with a cabinet decision pending. Greece has requested Cyprus to contribute its €100 million share to keep the project afloat.
Skylakakis underscored Greece’s efforts to prevent the loss of the project and the dire consequences of inaction by Cyprus. He stressed Greece’s commitment to its citizens and taxpayers, indicating a finite window for Cyprus to make a decision. In response, the Cypriot government is awaiting a cost-benefit analysis from Greece’s Independent Power Transmission Operator (Admie), which Papanastasiou believes will expedite Cyprus’s final investment decision.
The interplay between these Mediterranean neighbors reflects the complexities of regional cooperation and the high stakes involved in large-scale infrastructure projects like the Great Sea Interconnector. The outcome will not only affect bilateral relations but also has broader implications for European energy independence.
