The Greek government's announcement that French investment group Meridiam would enter the Great Sea Interconnector project company as majority shareholder with a 66% stake may initially have caught Nicosia by surprise. Nevertheless, the government expressed satisfaction with the development on Thursday, and after the fact, spoke of a "huge new momentum" in efforts to implement the project.
The only previous reference from the Cypriot side that could have hinted at the development was a statement by President Nikos Christodoulides, who told ANT1 that he had agreed with the Greek Prime Minister to update the relevant studies and that "more would become known within the next few days."
On Thursday, Energy Minister Michalis Damianos sought to present the agreement as the result of a joint political decision by Nicosia and Athens and assured that President Christodoulides had been kept continuously informed by Kyriakos Mitsotakis about the discussions.
‘Huge new momentum’
Damianos further stated that Meridiam's entry implements the joint decision taken by Christodoulides and Mitsotakis during the third Cyprus-Greece Intergovernmental Summit in Athens on 12 November 2025 to find a strong investor for the project.
"The participation of an international French giant with expertise gives huge new momentum to efforts to implement the project, while also demonstrating the common political will of Nicosia and Athens," he said.
He clarified that Meridiam will hold 66% of the project company, while ADMIE will retain the remaining one-third.
As for the geopolitical dimension and the risks associated with Turkey, he limited himself to saying that the participation of a major international French group helps the project "for obvious reasons".
Awaiting the EIB
Despite the government's satisfaction, the decision on whether the Republic of Cyprus will participate in the project's share capital remains open.
The minister said the government is awaiting the European Investment Bank's due diligence study on the economic dimension of the GSI, which is expected before the end of the year.
According to Damianos, the EIB's findings will form the basis for final decisions regarding Cyprus' equity participation and the project's actual cost.
He acknowledged that if the cost has risen beyond €1.9 billion, ways of covering the additional financing needs through investors will have to be examined.
He also described Meridiam's entry as a "vote of confidence," but did not suggest that the project's viability has already been secured.
He further left open the possibility of attracting additional investors, while questions regarding the terms of the agreement, the project's cost and Cyprus' commitments also remain unresolved.
DISY raises questions
The Democratic Rally (DISY) welcomed the new developments and reiterated its support for the electricity interconnection project, arguing that it could help end Cyprus' energy isolation, strengthen competition and energy adequacy, and place the country on the region's energy map.
At the same time, the party called for clarification as to whether the government had prior and full knowledge of the agreement and its terms, how it evaluates the deal, how the Republic's obligations are affected and what initiatives it intends to undertake.
Papadopoulos' pointed message
DIKO did not issue an official statement. However, party leader Nikolas Papadopoulos posted a message on X laden with meaning.
He congratulated the Greek government for securing investor interest in the GSI and added that "Cyprus must now honour its own obligations".
The remark was seen as a clear dig at the Presidential Palace, given that Papadopoulos has repeatedly criticised Nicosia's reservations and delays, arguing that the project cannot be evaluated solely on economic grounds.
Questions from AKEL
AKEL called for full disclosure of the terms agreed between ADMIE and Meridiam, and whether those terms affect the commitments undertaken by the Republic of Cyprus.
The party also renewed questions regarding:
- The project's final cost.
- The burden on consumers.
- The financing gap.
- The fate of European funding.
- The investigation by the European Public Prosecutor's Office.
It also called for an updated viability study to be made public, if one exists.
The background
Meridiam's entry appears to have been in preparation for months.
The government says that attracting a strong investor was a joint Christodoulides-Mitsotakis decision dating back to November 2025, while Greek media have reported months of contacts between Greece and France.
Reports have also referred to a visit by Greece's Environment and Energy Minister to France in May, as well as the presence of Meridiam's chief executive in the business delegation that accompanied Emmanuel Macron to Athens.
Ellinas: Cyprus must not remain a spectator
Energy expert Charalambos Ellinas described Meridiam's entry as an important development that increases the chances of the project being implemented and could attract additional capital.
He nevertheless expressed disappointment at Cyprus' limited involvement in recent developments and argued that the Republic should reconsider its position regarding participation with €100 million, so that it retains a voice and influence in the project's management.
According to Ellinas, the participation of a private investor of this size is an indication that the project has profit potential and could attract additional investors.
He also argued that the French presence could strengthen protection for the seabed surveys.
Despite the expected delay and the process under way between Nexans and ADMIE to establish a new timetable, Ellinas stressed that the project has not been cancelled but is only temporarily "frozen."
He also underlined that the GSI could strengthen Cyprus' energy security by allowing imports of cheaper electricity from Greece and insisted that the country should not remain a mere spectator in a project of strategic importance.
