A huge energy project intended to link the power grids of Greece, Greek-administered Cyprus and Israel through a vast undersea electricity cable is now in serious doubt, with Greek-administered Cyprus pulling back and the EU’s European Public Prosecutor's Office (EPPO) launching a formal investigation, EURACTIV reported.
Greek Administration of Southern Cyprus's leader, Nikos Christodoulides, announced late on Wednesday that the EPPO has opened a criminal inquiry into the troubled project, which has been plagued by delays and internal disagreements.
Speaking to local media, Christodoulides revealed that the investigation follows multiple complaints received over time, though he did not specify the focus or the individuals under scrutiny.
European prosecutors are investigating possible criminal offences relating to $2.12 billion mega power project, according to Reuters.
The EU had pledged $764 million in funding, with Greek-administrated Cyprus expected to cover 63 percent of the remainder and Greece the remaining 37 percent.
However, the viability of the plan has increasingly come under question in the Greek-administration of Southern Cyprus.
Greek-administered Cyprus
Greek-administered Cyprus Finance administrator Makis Keravnos recently stated that two independent studies have concluded the project is no longer economically sustainable under the current framework.
“Based on these findings, the project cannot proceed as planned,” he told Kathimerini newspaper.
Before news of the EPPO investigation broke, a Greek-administered Cyprus official suggested that Greece's Independent Power Transmission Operator had not met its commitments, implying this was a key factor in the Greek-administered Cyprus’s shifting stance, EURACTIV reported.
Greece
In Athens, frustration is mounting. Tasos Chatzivasileiou, a lawmaker from Greece’s ruling New Democracy party, urged Greek-administered Cyprus to clarify its position and reaffirmed Greece’s full commitment.
“Cyprus cannot afford to gamble with initiatives of such regional significance,” he warned.
The project also faces geopolitical headwinds.
Türkiye has long opposed the cable, arguing it infringes on maritime zones under a 2019 maritime agreement with Libya.
Israel and the EU
Israel, meanwhile, views the cable as a strategic bridge to the European energy market.
Yet, with Israel’s ongoing genocidal war in Gaza, Tel Aviv's focus has shifted, deprioritising the project for now.
Several countries in the EU bloc have committed to or already recognised Palestinian statehood and slammed Israel for gross humanitarian violations in Gaza.
Belgium has announced sweeping measures targeting Israel over its genocide in Gaza, including sanctions and an expanded arms embargo.
EU foreign policy chief Kaja Kallas has said that the humanitarian crisis in Gaza is a "fundamental test" of Europe’s resolve to defend its values internationally.
