The European Public Prosecutor’s Office has confirmed it is investigating potential criminal offences related to the €658 million funding of the EuroAsia Interconnector electricity project, sources familiar with the matter told Phileleftheros.
The investigation examines how a private company with no previous experience in electricity generation or transmission secured Europe’s largest-ever grant for such a project, only to be deemed incapable of execution by the European Commission approximately one year later.
EuroAsia Interconnector received €658 million in European Commission funding for the Israel-Cyprus-Greece electricity interconnection project. The Commission subsequently made repeated approaches to Cyprus’s new government after the 2023 presidential elections to remove EuroAsia from the project due to the company’s inability to secure investor financing or demonstrate project execution capabilities.
Investigation targets former Cyprus government officials
Sources indicate the investigation will cover former government officials from the Anastasiades administration, state officials who processed EuroAsia Interconnector’s application, and officials from relevant European Commission directorates-general.
The probe focuses on allegations that a politically exposed person and related individuals promoted the EuroAsia Interconnector investment from their official position in exchange for personal benefit, according to sources. This aspect of the investigation will examine claims involving other politically exposed persons and government officials.
Investigators are examining how Cyprus approved, supported and funded the private investment proposal through a €100 million state loan from the Recovery Fund, despite the applicant’s lack of confirmed technical expertise and adequate access to external financing.
European Commission reverses support for private energy firm
The European Commission and its Energy Directorate-General made repeated approaches to the Cypriot government after the 2023 presidential elections to withdraw the then-owner of EuroAsia from the project due to his inability to access millions of euros in loans and the company’s lack of technical expertise.
This led to IPTO’s involvement, which purchased the project from EuroAsia for approximately €48 million.
The investigation also examines allegations that a European Commission official who participated in managing and approving EuroAsia’s applications for the interconnection project was later found to have been employed by the company.
Two years after the initial approval, the governments of Greece and Cyprus, along with the EU itself, publicly acknowledge the project cannot be implemented while Turkey continues its objections and threats regarding international waters it considers part of its continental shelf.
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