Cyprus-Greece relations face a serious crisis as European prosecutors have launched a criminal investigation into the troubled electricity interconnection project, whilst a financial dispute threatens to derail the strategic energy link.
President Nikos Christodoulides revealed this evening that the European Public Prosecutor’s Office has opened a criminal investigation into potential offences related to the electrical connection project, following complaints submitted months ago.
The bombshell announcement comes amid escalating tensions over Cyprus Finance Minister Makis Keravnos’s refusal to release €25 million in approved funding for the project, sparking anger in Athens.
Presidential warning over Cyprus reputation
Speaking to journalists, President Christodoulides emphasised that Cyprus maintains a unified position on the strategically important project but issued a stark warning about protecting the country’s international standing.
“This government will ensure there is no shadow whatsoever over the Republic of Cyprus,” he declared. “Some people should be more careful when making statements, especially when they concern the name, reputation and credibility of our country. No one is above the credibility and reputation of this country.”
The President confirmed Cyprus expects Greek grid operator IPTO to fulfil its project commitments, stating: “The project’s viability depends on implementing commitments undertaken by the implementation body.”
When pressed about the investigation’s scope, Christodoulides declined to specify targets but stressed that protecting Cyprus’s reputation takes absolute priority over project timelines.
Athens fires back at Cyprus
Greek government officials responded with barely concealed frustration today, demanding Cyprus clarify its position on the troubled project.
Deputy Prime Minister Kostis Hatzidakis told Greek state television that the cable represents a European priority project, not a Greek national scheme, emphasising that Cyprus would be the primary beneficiary through ending its energy isolation.
“Greece’s commitment is concrete and has been demonstrated through various actions,” Hatzidakis stated. “But it remains to be clarified what Cyprus wants to do.”
Government spokesperson Pavlos Marinakis was more direct, telling Open TV: “There is no possibility that Greek taxpayers will shoulder the entire fiscal cost.”
€25 million funding row
The immediate flashpoint centres on Cyprus’s refusal to release €25 million for 2025, despite a September 2024 agreement between both governments providing for annual payments until 2029.
Minister Keravnos cites studies questioning the project’s viability, though critics note these assessments concerned IPTO’s loan arrangements rather than Cyprus’s treaty obligations.
Geopolitical obstacles have delayed crucial maritime surveys in international waters, disrupting IPTO’s promised timeline and raising concerns about spending hundreds of millions without guaranteeing project completion.
The European investigation covers both the electricity cable and the separate Vasilikos power station project, with President Christodoulides acknowledging both probes will cause further delays.
Despite the mounting crisis, a senior government source maintained that the interconnection remains strategically vital for Cyprus, whilst insisting IPTO must honour its commitments.
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