By Yannis Seitanides and Thanasis Athanasiou
Despite reaffirmations of its support, Cyprus has made no concrete progress on the much-anticipated electrical interconnector with Crete. President Nikos Christodoulides underscored the Republic’s commitment to the project but stopped short of confirming the release of the committed €25 million to Greece’s IPTO (Independent Power Transmission Operator), a point openly demanded by Greek Prime Minister Kyriakos Mitsotakis this past weekend.
Politics over progress?
Public statements by both President Christodoulides and Finance Minister Makis Keravnos have left the project’s trajectory unclear. While Cyprus has not refused the €25 million payment, the government insists it remains wary of the project's actual progress. Notably, neither the intergovernmental Memorandum of Understanding nor the regulatory mandate that authorises the payment tie the disbursement explicitly to demonstrable construction milestones. Still, officials argue it’s prudent to safeguard taxpayer interests as the project flounders. Behind the scenes, political tensions, such as impending cabinet reshuffles, are influencing the tone of communications with Athens.
Diplomatic signalling vs. technical reservations
In a message directed to Cyprus, Greece, Brussels and "anywhere else," Christodoulides emphasized Cyprus's geopolitical stake: “We are fully committed to this strategic project,” citing his recent diplomatic trip to the UAE to explore potential investments. Yet, he also implicitly criticized the Greek Prime Minister for exerting public pressure. “We must speak less and act more, and not compromise national interests in public forums,” he stated.
Similarly unified in allegiance but cautious in method, Finance Minister Keravnos framed his stance in technical terms. Speaking on RIK1’s “Apo Mera se Mera”, he raised concerns over the project’s €2–3 billion cost, uncertain economic returns, and the logistical strains of deep-sea construction. He cited comparable interconnectors, such as Malta’s, as cautionary tales where expenses rather than benefits were ultimately passed onto consumers.
Regulatory gridlock keeps €25 million ‘frozen’
Formally allocated in Cyprus’s budget, the €25 million intended for IPTO remains effectively "frozen" without approval from the Finance Ministry, requiring a legality check and formal endorsement before any payment can proceed. Keravnos has clarified that decisions like these are not made in isolation: they follow expert review and internal consensus.
In parallel, regulatory friction persists. The Cyprus Energy Regulatory Authority (RAEK) refuses to allow cost recovery from consumers until the interconnector becomes operational, halted by unresolved questions about revenue models, geopolitical risks, and shifting cost‑benefit balances. IPTO warns that without guarantees, it cannot secure necessary loans or continue financing. Meanwhile, delays, some caused by navigation warnings and geosecurity tensions, have already added millions in unexpected costs. Despite these obstacles, Greece continues to assert its resolve, and Cyprus intermittently signals readiness, leaving the project's path uncertain but still politically alive.
