The European Commission’s decision to revoke a €101 million grant for the natural gas reception terminal at Vasiliko and to demand the return of €67.2 million already disbursed has acted as a political catalyst across Cyprus, intensifying calls for accountability, and swift, realistic planning to integrate natural gas into the country’s energy mix.
The move by Brussels is directly linked to the project’s failure to meet implementation milestones, drawing attention to decisions taken during the presidency of Nicos Anastasiades. The European Public Prosecutor’s Office (EPPO) is already investigating potential criminal liability surrounding the misuse of EU funds.
Amidst the fallout, opposition party AKEL has called on the Anti-Corruption Authority to launch a separate domestic investigation, while ruling party DISY has reiterated that any wrongdoing must be thoroughly investigated and brought to justice. In two separate statements issued on Wednesday, 24 September, and Friday, 26 September, DISY has increasingly distanced itself from the project’s management under the previous administration.
Anti-corruption authority urged to act
Speaking on Politis radio (107.6 & 97.6), AKEL General Secretary Stefanos Stefanou said there is ample evidence from parliament and government records which warrant a wider investigation. He argued that the ongoing EPPO investigation, which focuses solely on the €101 million in EU funding, does not fully address the domestic policy and procedural decisions that led to the Vasilikos debacle.
Stefanou announced that AKEL would formally request the Anti-Corruption Authority to launch an ex officio probe, as provided for by law, into all key decisions - both procedural and substantive - that brought the project to a standstill. He recalled that as early as 2019, based on a report by the Audit Office, AKEL had warned that the Vasilikos contract would burden the economy with hundreds of millions and lead to higher electricity prices.
He accused the then government of pressing ahead with the agreement “accepting full responsibility,” despite red flags, which has now left Cyprus with incomplete infrastructure, no functioning gas terminal, and facing a €136 million claim by the Chinese-led consortium in London arbitration, all while consumers continue to pay high electricity rates.
Stefanou also criticised the Attorney General’s Office for what he described as a lack of will to investigate the full scope of the matter domestically, reaffirming AKEL’s intention to pursue the issue institutionally via the Anti-Corruption Authority.
Next steps
For the current government however, accountability is not the immediate priority. Energy Minister Giorgos Papanastasiou stated that the focus remains on securing gas supplies for the country. Speaking to the Cyprus News Agency (CNA), he said that legal advice has already been sought regarding the European Commission’s request for the return of funds.
Finance Minister Makis Keravnos also downplayed the issue of repayment, saying, “The real issue is ensuring this project proceeds as it should, at the right pace, so that we can soon see the benefits of natural gas. This will boost our economy’s competitiveness and help address high electricity costs.” He added that the government would renew support measures to ease the burden of high energy prices on consumers.
Despite these assurances, 14 months after the termination of the contract with the Chinese consortium, the government has yet to present a clear and realistic timeline for project completion. So far, its handling appears to have delayed - rather than accelerated - the arrival of natural gas in Cyprus.
Opposition demands a realistic Plan B
In its latest statement, DISY accused the government of indecision and inconsistency, which has led to deadlocks and reputational damage. “The reassuring statements of the past and the premature celebration of a project restart proved to be nothing more than a PR stunt,” DISY said. “Mistakes of the past are no excuse for a government that has been managing this project for two and a half years. It must now deliver. Complete the Vasilikos terminal with a clear plan and end the experimentation.”
AKEL’s Stefanou also criticised the lack of a coherent 'Plan B' after the termination of the original contract. He noted that the government abandoned the subcontractor solution and never advanced the promised fast-track procedures. He called for a rapid and rational restart of the project, completion of the onshore terminal, and the long-delayed integration of natural gas into Cyprus’ energy system.
