European prosecutors are investigating allegations that politically exposed persons and EU officials engaged in criminal conduct related to the Cyprus-Crete electricity interconnection project, with the probe covering the period before Greek operator IPTO acquired the scheme, sources told Phileleftheros.
The European Public Prosecutor’s Office investigation reportedly focuses on claims that officials improperly promoted the EuroAsia Interconnector project for personal gain, ultimately securing 658 million euros in EU funding—the largest grant ever awarded by the Commission for such infrastructure.
The allegations encompass politically exposed persons, Cyprus government officials and European Commission staff involved in the project’s approval and 658 million euro funding decision, according to sources familiar with the investigation.
Officials allegedly promoted project for personal benefit before IPTO purchase
Primary allegations centre on claims that a politically exposed official and family members advanced the EuroAsia Interconnector investment from their official position in exchange for personal benefit, sources said.
Prosecutors are examining how an investment proposal from a private individual without confirmed technical expertise or adequate financing access for the expensive project received approval and support from Cyprus and subsequently the European Commission.
Cyprus provided backing including a 100 million euro state loan from the Recovery Fund before the Commission approved the substantial grant for the project linking Israel and Cyprus to the European electricity grid.
Investigation examines 658 million euro EU grant approval process
The investigation covers circumstances under which the European Commission and its energy directorate made repeated approaches to Cyprus after the 2023 presidential elections seeking removal of EuroAsia’s then-owner from the project.
These interventions occurred months after the Commission approved the 658 million euro funding, with officials citing the owner’s inability to secure multi-million euro financing and the company’s lack of technical expertise, sources indicated.
The project was subsequently transferred when IPTO purchased it from EuroAsia for approximately 48 million euros, completing the ownership change sought by Commission officials.
Prosecutors are also investigating allegations that a European Commission official who participated in managing EuroAsia’s grant applications was later employed by the company, sources said.
The interconnector is a planned infrastructure project linking Cyprus and Israel to European electricity networks through Crete.