25/02/25

ISRAEL RELATED

The Cyprus Chamber of Commerce & Industry posted on social media that its president & Secretary General welcomed the Ambassador of Israel Oren Anolik, for a constructive discussion on trade relations and investment opportunities.
Recognizing the historically close ties between the two nations, they focused on strengthening economic collaboration, particularly in areas of mutual interest such as energy, technology, digitization, and healthcare.
Both sides emphasized the importance of promoting joint ventures, fostering innovation, and streamlining regulatory frameworks, reaffirming their commitment to deepening bilateral relations for mutual benefit.

ENERGY NEWS

Kathimerini reported (from Greek Kathimerini) that the ‘clock is ticking’ for surveys regarding the electrical interconnection between Greece and Cyprus not only to intensify, but also enter the “deep waters” of areas outside national territorial waters, which Ankara claims are covered by the invalid Turkish-Libyan memorandum. The decision to promote the cable project has been “locked in”, while Athens’ next moves were examined in an informal meeting held under the Greek Prime Minister last Saturday.

Surveys of the Italian ship are scheduled to begin within the next fortnight, although alternatively it has not been ruled out that it may be postponed for a few weeks, but in any case not beyond two months.

Athens has no illusions about Ankara’s possible reaction but considers the promotion of the project to be a one-way street for a number of reasons:

• The country has made commitments to the EU, as well as to the French company participating in the project, which obviously also has an economic dimension
• Any withdrawal by Athens would signal indirect acceptance of Ankara’s positions on the validity of the Turkish-Libyan memorandum

In view of the finalization of decisions on the cable, one of the “pluses” for Athens include the fact that two of the most powerful European powers – France and Italy – are involved in the project in different ways. Also, the project is completely compatible with international law and is not linked in any way to the regime of maritime zones.

On the other hand, a possible “minus” is that the US is not only in a “transition” phase and is focusing on the Ukrainian issue, but it is also clear that it does not have a complete picture of what is going on in the region.

This week, the Greek Foreign Minister will be in New York and then in Washington, where he is to meet at the State Department with his new American counterpart Marco Rubio, a person who knows the delicate balances in the Eastern Mediterranean.

Greece, in order not to cause unnecessary tensions, Athens will not surprise Ankara.

Through existing channels, it intends to inform it of its actions, but also of the reasons why they are completely compatible with international law.

Media reported that a new failure at an Electricity Authority unit yesterday, combined with the zero contribution of wind power generation, resulted in the production system not having the capacity to meet the particularly increased demand due to low temperatures.

There are reports that the Authority could begin implementing rolling power cuts as electricity demand has exceeded production capacity,

Cyprus’s cabinet has approved draft legislation allowing the national grid operator to develop electricity storage facilities, a move aimed at preventing waste of renewable energy during low-demand periods.

Patience is over and sabotage of crucial energy projects for the average person had reached an intolerable stage, Kyriakos Tafounas head of the electricity authority unions (Epopai-Sek) said.

The union leader unleashed a scathing critique of the state’s misguided electricity policy vis-à-vis consumers, revealing that the unions were convening to determine their next steps, with strike action a possibility.

The union leader emphasised that delays in essential public infrastructure projects had become unbearable, and it had become clear that Cyprus’ energy market structure was ill-suited to the island’s small scale.

The municipality of Aradippou has become the first in Cyprus and one of few in the European Union to achieve complete energy independence through renewable sources.

Through a large municipal photovoltaic park with a capacity of 2.96 MW, Aradippou will cover 100% of its electricity needs, saving approximately €700,000 annually that the municipality previously spent on street lighting and municipal facilities for its 25,000 residents.

ECONOMIC NEWS

The Cypriot government has rolled out a €60 million investment plan designed to boost the competitiveness and sustainability of the country’s agricultural sector.

The plan focuses on modernizing farms, improving crop protection infrastructure, embracing smart farming technologies, and enhancing greenhouse operations.

The new skyscraper slated to be built in downtown Nicosia amid public outcry due its proximity to the medieval Famagusta Gate, will bring investment and rejuvenation to a stagnated area, the Nicosia district administration (EOA) president said.

24/02/25

ISRAEL RELATED

INBNews reported that the “Leader in Hospitality-Investor/Entrepreneur Award” at the 46th Hotel Industry Conference & HORECA was given to Roni Aloni, CEO of Leonardo Hotels & Resorts Mediterranean-Fattal Group. This is a person whose vision and investments transformed the hospitality industry in Cyprus. Leonardo Hotels & Resorts Mediterranean first entered Cyprus in 2017, bringing with it a wealth of experience as Israel’s leading hotel brand. Starting with three hotels in Paphos, it has now surpassed 2,500 rooms in Limassol, Larnaca and Protaras with further expansion plans in Latchi, Nicosia and beyond.

INBnews reported that during a panel discussion on what attracts investors to Cyprus, Shaul Keinan, Managing Director of Premium Access Group, said:

“It’s a beautiful, fantastic place to live & work with delicious food, good, friendly people and great weather”.

ENERGY NEWS

DRILLINGS

Turkey’s Defence Ministry has declared “invalid” a recent hydrocarbon agreement between Cyprus and Egypt. It said it threatens regional stability and undermines efforts to resolve the Cyprus issue.

“As Turkey, we will not hesitate to exercise our powers as a guarantor state”, ministry sources said, condemning what they termed as “the Greek Cypriot administration’s “usurpation” of Turkish Cypriot rights”.

Zeynep Ozdemir, an energy expert at a pro-government think tank, suggested Ankara might seek to halt ENI’s activities in the region, citing previous successful interventions against the Italian energy company’s operations.

Egypt is eager to support Cyprus as it advances with the exploitation of its natural resources, with the two recently signed energy agreements holding great potential for mutual benefit, Egypt’s Ambassador to Cyprus Mohamed Zaazou has told GOLD Magazine in an upcoming interview.

According to Zaazou, cooperation between Cyprus and Egypt in the energy sector will not only enhance energy security for both nations but will also contribute to lowering electricity prices, making natural gas a more affordable and sustainable option for households and industries. Furthermore, it will demonstrate how the East Med region can evolve into a strategic hub for natural gas, positioning it as a significant player in global energy markets.

President Christodoulides, in an interview with Egyptian newspaper Al-Ahram, said the two agreements signed with Egypt on exploitation of the Cronos and Aphrodite fields are important and open new horizons for strategic partnerships.

Natural gas production from Block 6 of Cyprus’ Exclusive Economic Zone (EEZ) could commence within 2 to 2.5 years, according to Constantinos Hadjistassou, Professor at the School of Sciences and Engineering, Department of Engineering at the University of Nicosia.

He described the agreement concerning Block 6 as the most significant of the two agreements signed recently in Cairo & also highlighted the multiple benefits this development will bring to the Republic of Cyprus.

According to Hadjistassou, the cost of developing the Block 6 reserves will be lower than that of the “Aphrodite” field, which requires the construction of entirely new infrastructure.

Kathimerini reported that with Chevron’s long-awaited Aphrodite deal, ENI fast-tracking Cronos, and ExxonMobil drilling for a potential mega-find, 2025 could redefine Cyprus’ energy future—if everything goes to plan.

OTHER

The Minister of Foreign Affairs of Greece, George Gerapetritis, stated that the surveys on the Cyprus-Greece electrical interconnection cable will continue as planned. He noted that the electricity interconnection program is European and important, expressing the hope that Turkey will not raise objections and that there will be understanding for the progress of the project.

A tender process with the aim of installing two new generators (40MW each) at the Dhekelia power station has begun, Energy Minister George Papanastasiou said. The aim of the new generators’ purchase is to limit the costs borne by the government in acquiring European Union emission rights, as well as to limit the amount paid for diesel and fuel oil to power the island’s grid. The generators could be installed within the next year.  Philenews reported that the Cyprus Electricity Authority (EAC) is set to evaluate three bids with proposals ranging from 107 to 148 million euros. Greek company TERNA submitted two proposals while another Greek company gave another proposal. They will burn diesel and not natural gas as it is not planned for gas to be used in the next several years, even if it becomes possible for natural gas to be utilized in Vasiliko within the next two years.  Local residents have already staged protests against the installation of new generators at the Dhekelia power station. The European Commission had initially demanded that Cyprus close the power station, given that it does not meet the EU’s emissions targets, but The Cypriot government promises to modernise it to mitigate those emissions.

Energy Minister George Papanastasiou called for Cyprus to save energy and that the government is also planning to increase the country’s energy storage capacity. The Electricity Authority is going to install 40 megawatts worth of storage capacity and the Minister requested the ability to install another 40 with the hope of avoiding situations when solar farms have been “cut off” as more electricity is being produced than is required. The has also been interest from the private sector for installation of storage facilities and the Transmission System Operator has already received more than 20 applications.

According to the Transmission System Operator the total installed energy production capacity from solar panels has increased by 21 per cent in the last year, reaching 967.4 megawatts.

The leaderships of Electricity Authority (EAC) trade unions will meet today to examine “serious developments” in the energy sector. In a letter to the authority’s board, the four trade unions representing workers at EAC said “stagnation in implementing EAC decisions of strategic importance concerning the energy sector” would be on the urgent meeting’s agenda.

Cyprus has submitted its final compliance plan for power generation units at Dhekelia and Vasiliko sstations to the European Commission, outlining measures to meet the EU’s revised Industrial Emissions Directive. The plan details strategies for the Electricity Authority of Cyprus (EAC) steam generation units at both locations, focusing on emissions reduction and regulatory compliance.

Philenews reported that there is the misconception that Cyprus’ electrical connection with Europe and/or energy storage units will solve the issue of energy cuts in photovoltaic systems. In all countries with such infrastructures, energy production cuts from renewable sources (RES) are frequently implemented. This is because energy from RES cannot be easily integrated and absorbed into the system. Furthermore, energy storage units will not significantly change the issue, as the number of photovoltaic systems is increasing, and storage units cannot absorb all the energy produced by RES. There will always be dependence on conventional energy. 

The Cyprus Mail reported that households and businesses across Cyprus will soon have better control over their electricity costs, thanks to the nationwide rollout of smart meters by the electricity authority of Cyprus (EAC). With 500,000 smart meters set to be installed by 2028, the ambitious project aims to help consumers monitor their energy usage in real-time while enhancing the reliability of the country’s power supply.

ECONOMIC NEWS

Deputy Minister of Tourism Kostas Koumis expressed optimism about Cyprus’ tourism sector in 2025. He pointed out that “strategic planning is essential” as the industry enters a new cycle with fresh challenges and evolving traveller expectations. Koumis’ comments were delivered by the PS of the Deputy Ministry of Tourism at the opening ceremony of the 46th Cyprus hotel summit and Horeca Expo, organised by the Cyprus Hotel Association. But, he noted, challenges from the previous year persist. These include ongoing geopolitical conflicts, air transport obstacles, and the expectation that Europe (Cyprus’ main market) will likely feel the impact of new US tariff policies. Other challenges include climate change, infrastructure adequacy, labour shortages, and over-tourism. He also emphasised the need to focus on the qualitative aspects of tourism rather than just the quantitative ones.

“We must design, upgrade, and compete” said Thanos Michaelides, President of the Cyprus Hotel Association (PASYXE), during his speech at the 46th Hotel Industry Conference & HORECA. He also emphasized the importance of a comprehensive strategy for sustainability and that the 

strategic goal is to extend the tourism season that had an excellent year in 2024 (surpassing 4 million visitors).

Politis reported that rental prices in Cyprus’ shopping centers are skyrocketing, according to the Danos real estate consultants. This is due to their increased attractiveness in recent years. This consumer preference is reflected in rental prices, which have skyrocketed to €70 per square meter, from €45 before the pandemic. Two more malls are also being planned for Limassol, each of which will be an investment of 120 million euros.

Politis reported The need to establish an effective mechanism for controlling foreign direct investment in Cyprus was highlighted in a seminar organized by the Cyprus Bar Association. Investments exceeded €3.5 billion in 2023, in sectors such as tourism, light industry, technology, education and professional services. The president of the Cyprus Bar Association, Michalis Vorkas, noted that the operation of the control mechanism should be independent and established jointly with other interested parties such as the Cyprus Association of Certified Public Accountants, the Cyprus Shipping Chamber and the Cyprus International Business Association.

Cyprus, despite its small size, is playing an increasingly important role in the global space scene said the president of the Cyprus Space Exploration Organization (CSEO) and vice-president of Innovation of the World Organization for Space Research (COSPAR) George Danos in an interview. He referred to COSPAR 2025, the global conference on space research, which will be held this year in Nicosia, but also to the effort to explore Space by states and private companies. He also referred to the establishment of C-SpaRC, the Cyprus Space Research and Innovation Center that focuses on research into space weather, its effects on human health and the development of advanced space technologies. It is also involved in the development of small satellites and there is cooperation with NASA.

20/02/25

ENERGY NEWS

Media reported that Cyprus’ electricity network is set to bear more pressure over the coming days, due to the cold spell forecast, increasing demand for heating.

The reduced size of the system and the fact that it is isolated and independent make it susceptible to weather phenomena and other unforeseen events.

Some electricity producing units have been going through scheduled maintenance, while faults had appeared in others.

There has been exchange of energy with the occupied north but this happened in many cases in the past, as part of confidence-building measures.

The situation has highlighted the need to place energy storage as a priority.

INBnews reported that Logicom company and Demetra holdings are examining the possibility of entering the energy sector through the technology of small modular nuclear reactors (SMRs), known

as “pocket reactors”. This is a new emerging next-generation technology for the production of green, safe and cheaper nuclear energy.

ECONOMIC NEWS

Cyprus will raise minimum wages for 19 hotel sector jobs from January 2025, President Christodoulides announced, as the economy grows at one of the highest rates in Europe.

He said unemployment had fallen to 5%, its lowest level in 15 years, while wages in the hospitality sector had risen more than 10% over the past two years.

The government will also launch initiatives to attract Cypriot professionals working abroad, with Christodoulides scheduled to meet expatriate workers in London on May 21.

Cyprus will launch a digital platform on March 4 enabling consumers to compare prices of basic goods across supermarkets nationwide in real-time.

The e-kalathi platform will track prices of 478 essential products across the island’s supermarkets,

The platform’s pilot phase, which began on February 10, concludes on February 20, with final improvements to be implemented before its public release.

A study was conducted by the Cyprus Economic and Competitiveness Council to assess the risks of the Cypriot economy. 50 executives from the economy were asked to give their own assessments regarding 18 possible risks.

A prolonged drought resulting in water shortages presents the higher risk followed by the risk of cyberattacks.

Only about 30% of Cyprus’s short-term holiday rentals are officially registered despite a 73% increase in registrations since April 2023, Deputy Minister of Tourism Kostas Koumis said.

Meanwhile, the Real Estate Agents Registration Council is calling for the immediate abolition of daily rentals to protect the consumer and the real estate market, to ensure the quality of the tourist product and the good name of Cyprus abroad.

Kathimerini reported that the government is giving unlicensed hotels and tourist accommodations a two-year window to secure their operating licenses, with specific milestones and actions outlined along the way.

The main goal is to address health and safety concerns, ensuring that all accommodations in Cyprus meet the necessary standards.

Kathimerini reported that the Papantoniou supermarket in Engomi has undergone a complete renovation and will reopen its doors in early March under the new name Sklavenitis. This marks the first of the nine former Papantoniou stores that have now joined the Sklavenitis Cyprus network, following the integration process last November. Sklavenitis now operates 27 stores and will retain all 769 employees from the Papantoniou stores.

It expects a turnover of €400 million in 2025 following the acquisition of the Papantoniou supermarkets. In 2024, the network reported a turnover of €230 million.

17/02/25

ENERGY NEWS

Two major agreements on natural gas commercialization will be signed today in Cairo. One is the agreement between the Egyptian Government and the ENI-Total consortium (to be signed in the presence of the Minister of Energy) for sending natural gas from the Cronos field (Block 6) to Egypt. The other is a memorandum between Egypt-Cyprus and the Chevron, Shell and New Med consortium for the Aphrodite field (Block 12).

These agreements represent the first commercialization for Cyprus’ offshore gas reserves and will regulate the extraction, transportation, and sale of natural gas, with Egypt serving as a key transit hub.

“This is a defining moment for Cyprus & the agreements will have a direct impact on the country’s economy and contribute to our long-term goal of reducing electricity costs” President Christodoulides said.

Industry experts view the move as a critical step in Cyprus’ energy strategy, which aims to boost the country’s energy independence while securing a role in global energy markets. The agreement could also enhance European energy security, offering an alternative source of supply.

Cyprus approved Chevron’s development plan for the Aphrodite natural gas field. The development plan includes a floating production unit in Cyprus’s exclusive economic zone and a pipeline to transport natural gas to Egypt, the energy ministry said in a joint statement with Chevron Cyprus Limited. The project will be developed by Chevron Cyprus, Shell’s BG Cyprus and NewMed Energy.

“We look forward to the rapid development of the field through Egyptian facilities, which will be a tangible step towards establishing Cyprus’s envisioned role in the region’s energy sector,” Minister George Papanastasiou said.

Frank Cassulo, Chevron’s vice president for international exploration and production, said the development aligns with the company’s strategy to “provide affordable, reliable and increasingly cleaner energy”.

The approval of modifications to the development plan aims to advance technical and engineering work and move towards a Final investment decision for Aphrodite.

The development plan outlines a new strategy for extracting and utilising the gas, focusing on a more efficient and cost-effective approach. Instead of constructing extensive onshore facilities in Cyprus, Chevron aims to export the gas to Egypt via a subsea pipeline, leveraging existing infrastructure there.

Philenews reported that the assessment is that at this stage, no new arrangements have been determined regarding the financial aspect of the production and sale of natural gas, that is, regarding the profit sharing rates by the two parties.

This part of the negotiations will take place when there is a clearer picture of the techno-economic data of the investment. In order to form this picture as quickly as possible, the two parties have reportedly agreed regarding the conduct of a preliminary technical study (pro-FEED), which will be followed by the final FEED study. If this paves the way for profitable development and marketing of the field, the final investment decision (FID) and the planning of work on the field will follow.

Philenews reported that an announcement by Israeli  New Med caused concern among a wide circle of energy people in Cyprus and (according to info.) also caused discomfort in the Cypriot Government.

The Government unofficially states that the references made in New Med’s statement to the Tel Aviv Stock Exchange are not accurate, especially regarding the milestones – timetables agreed with Chevron.

The Government also expresses discomfort over the many and serious conditions that New Med emphasizes in its statement, regarding the next stages of exploitation of the field by the consortium, in which, however, it does not have the “upper hand”.

This is not the first time that the government has expressed annoyance over -provocative, as they are characterized- reports and announcements by the Israeli company, which is accused of unwillingness to cooperate in promoting investments related to the Aphrodite field.

What has mainly bothered representatives of the Cypriot side is the report by New Med that the earliest the Aphrodite field could begin to be commercially exploited is 2031, and this under many & difficult conditions.

In general, New Med’s announcement to the Tel Aviv Stock Exchange sends the message that the consortium has not committed to a specific date for the completion of the studies and projects and the start of production, but has agreed to conduct the technical studies (preFEED and FEED) and, depending on the results of the studies, decisions will be made as to whether or not the investment will be made.

According to the Cypriot side, the 2031 milestone to which New Med refers does not exist in the amended Development Plan, nor is it going to be accepted by the Government. However, no information was given on the milestones that were agreed.

Regarding the cost of 4 billion euros to which New Med refers to, sources in Cyprus say this was an estimate by Chevron and before the agreement last week, and during the negotiations, ways to reduce this cost were discussed, something that the Cypriot side considers an achievable goal.

ECONOMIC NEWS

Kathimerini reported that a controversial tourist development in Latchi has raised serious concerns over government transparency and adherence to the rule of law, as the construction of a four-star resort faces allegations of long-standing illegalities. Despite multiple violations flagged by the Paphos Environmental Impact Authority (EIA) since 2023, authorities now appear to be moving toward legalizing the unauthorized expansions instead of enforcing corrective action.

The Zening Hotel Eco Resort, a project backed by Israeli investors, is being built on the site of the former Elia Latchi Holiday Village. The development has been fraught with planning breaches from the outset, with unauthorized structural additions—including a third floor—proceeding despite official stop-work notices. Now, instead of taking steps to address these violations, government agencies appear poised to retroactively approve them.

A 49-year-old German woman accused of illegally handling Greek Cypriot property in the occupied north of Cyprus has lost her appeal for release while awaiting trial. The Court of Appeal unanimously rejected her request to be freed on parole, meaning she will remain in custody until proceedings begin on March 5, 2025. The woman faces 44 charges, with the first 24 being the most serious, related to alleged fraudulent property transactions. The court has repeatedly upheld her detention, citing the risk that she might flee justice.

Multiple infrastructure projects worth millions of euros in Cyprus have faced significant cost overruns, delays or cancellations, according to an Interior Ministry report covering projects from 2010 to 2024. The report was prepared in response to a parliamentary question by AKEL MP Nikos Kettiros. The Eleftheria Square development in Nicosia stands as the most expensive completed project, with costs soaring from an initial €16 million to over €40 million. Several major contractors, including CYFIELD, IACOVOU BROTHERS, and Lois Builders, appear repeatedly across different projects in the catalogue. Some contractors who abandoned projects midway continue to receive new government contracts.

Cyprus’ GDP increased by 2.6 per cent compared to the same quarter of the previous year. The growth was driven largely by the hospitality, wholesale and retail, motor vehicle repair, and information and communication sectors. There was a slight decline in construction.

12/02/25

ENERGY NEWS

Finance Minister Makis Keravnos expressed doubts about the future of the Great Sea Interconnector (GSI) citing serious political obstacles from Turkey. He said his concerns about the project had been confirmed by expert studies. 

 A U.S. consultancy firm’s study reportedly advised against Cyprus investing in the project’s share capital. Keravnos said the government was considering the consultants’ assessments in its decision-making process and the matter falls under the Ministry of Energy’s jurisdiction.

Philenews reported that the Government should be more concerned about the objections that the Minister of Finance is now publicly expressing, and which are also adopted by his close associates, regarding the electrical interconnection, than about any pending issues regarding the intended agreement with the Greek Government and the project implementor for the Republic’s participation in the share capital of the new implementing body (GSI).

On the other hand, even if they do not publicly acknowledge it, all three sides are concerned about Turkey’s stance, as the issuance of a Navtex for the carrying out of seabed surveys in international waters is still pending, in order for Nexans to complete its planning for laying the cable.

ECONOMIC NEWS

Cyprus will implement its new green tax regime in May as the government enters the final preparation phase, Finance Minister Makis Keravnos said.

Cyprus is obligated to implement these fees due to previous commitments.

Both the green tax and compensatory measures will be announced simultaneously, he added.

INBNews reported that the Environmental Authority has paved the way for the implementation of Fattal Hotel Group’s plan to build a new hotel called Leonardo Club Latsi in Polis Chrysochous.

A major mixed-use development featuring a 12,000-student university campus and medical facilities has been proposed for Limassol.

The St Nicholas Hills project, planned for Prastio Avdimou community, will include educational facilities, a medical centre, rehabilitation facilities, student accommodation, research centres and cultural venues.

The investment (Cypriot company) could even surpass 1 billion euros.

11/02/25

ENERGY NEWS

Philenews reported that according to unofficial info., at least one of the requests of the Cypriot side, regarding the observations of the American consulting firm on the Concession Agreement for the electrical interconnection in the Great Sea Interconnector, will be satisfied.

ADMIE (operator of the project) seems willing to accept the request of the Cypriot Government that the Great Sea Interconnector continues its operation as the implementing body and as the owner of the project, based in Cyprus.

The transfer of GSI’s headquarters to Cyprus – so that the Cypriot courts have jurisdiction to resolve disputes may also affect GSI’s ability to secure financing and investors.

With regard to the transfer of ownership of the electrical interconnection to GSI, as a condition for the purchase of share capital from Cyprus, the Minister of Energy confirmed that the position of ADMIE is that all assets related to the interconnection will be transferred to GSI, but this will happen when the new shareholding structure of the company is formed (when the investors/shareholders are found) and it is approved by the European Commission as an accredited manager of the interconnection.

Electricity prices are unlikely to drop over the next two years, given the absence of natural gas and the lack of storage for energy generated by renewables, according to Giorgos Petrou, chairman of the Electricity Authority of Cyprus (EAC).

On the issue of natural gas he said that infrastructures still need improvements in order to burn the gas to generate electricity. These works should take about a year.

He also mentioned the EAC will be carrying out its own study into the impact of the Great Sea Interconnector.

Economic analyst Fiona Mullen, in an analysis of a possibility of a solution to the Cyprus problem, notes that Turkey might offer cooperation on electricity cables.

Either with the subsea electricity cable that it wants to send to northern Cyprus, or the Great Sea Interconnector, or perhaps a deal on both cables.

This cooperation seems to have the biggest possibility oof success (when it comes to economic/energy cooperation) between the sides.

If Turkey wants to add another electrical connection, for example to northern Cyprus, it must get permission from ENTSO-E (European Network of Transmission System Operators for Electricity) members.

But Greece and the Republic of Cyprus have refused or de facto refused such permission. If Turkey sends a cable to northern Cyprus without permission, ENTSO-E rules dictate that it would have to be mono-directional and this would increase the Turkish Cypriots’ dependence on Turkey

Another complicating factor is that the Great Sea Interconnector crosses the area of the maritime agreement that Turkey signed with the Libyan Government of National Accord (GNA) in November 2019.

She concludes that the only way Greek Cypriots might accept any offer for cooperation on cables is if it also included other significant military powers, in addition to Greece, such as Israel, or the US, or potentially Egypt.

Israel has the biggest interest, as it is due to be the recipient of the final leg of the Great Sea Interconnector.

ECONOMIC NEWS

A yacht club with outdoor green spaces, footpaths, cycle lanes and pedestrian routes within the Larnaca marina area was discussed last week during the first meeting convened for the architectural competition for the club.

The ministry of transport confirmed the launch of the competition following decisions by the cabinet.

The contest will cover the design of the yacht club building as well as the outdoor spaces within the marina area.

10/02/25

ENERGY NEWS

Energy Minister George Papanastasiou said that from a first reading of the letter sent by the Greek Minister of Energy on the electrical interconnection, he finds that the main concerns of the Cypriot side are addressed.

However, he stressed that ADMIE’s (operator) response to Cyprus’ concerns about the interconnection, as recorded in a legal due diligence study prepared by Curtis, Mallet-Prevost, Colt and Mosle LLP, will be sent to the American firm, which acts as external advisor, for evaluation and positioning. Consequently, the Government’s response whether or not the Republic will participate in the share capital will be given after the American firm’s response. This will obviously take time.

Energy regulators from Cyprus and Greece met in Athens last Thursday to strengthen cooperation on regional projects, with a focus on the Cyprus-Crete electrical interconnection.

The regulators discussed the renewal of their multi-year cooperation memorandum and addressed regulatory issues concerning projects of common interest.

Especially regarding regulatory aspects of the interconnection project, with both sides reviewing progress and addressing outstanding issues.

The regulators maintained a mutual approach towards accelerating the project’s implementation for consumer benefit.

The Ministry of Energy has published guidelines for its €35 million energy storage scheme aimed at promoting energy storage solutions across the country.

The scheme, funded through the ‘THALIA 2021-2027’ Cohesion Policy Programme and the Just Transition Fund, targets approximately 150MW of storage capacity with total storage capabilities of around 350 MWh.

The initiative aims to reduce electricity costs for citizens whilst supporting the country’s green energy transition.

The Chairman of the parliamentary Energy Committee, DISY MP Kyriakos Hatzigiannis stated on radio that the Prometheus ship floating storage and regasification unit for liquefied natural gas-FSRU)  is not even seaworthy and needs many more parts than the one or two that were identified by the technicians who inspected it in Malaysia.

Philenews reported that a state audit has uncovered serious issues in the licensing, construction, and upcoming operation of the privately owned PEC power station in Vasilikos, raising concerns over procedural violations and potential government accountability.

While no official details have been disclosed, sources indicate that several key permits required for infrastructure development were either missing or improperly issued. The report is expected to be finalised and made public by late February.

The Cyprus Mail reported that homeowners across Cyprus who invested in solar energy to reduce their electricity costs are now facing frequent remote shutdowns of their photovoltaic (PV) systems.

These unexpected disconnections have led to rising bills, forcing many to question the long-term viability of their solar investments. Without urgent action, these power cuts could undermine the country’s green energy transition. The root of the issue lies in Cyprus’ isolated electrical grid and it must balance energy supply and demand in real-time, leading to disruptions when solar energy generation exceeds consumption. 

The solution is the use of large scale energy storage systems.

Starting today, the Electricity Authority of Cyprus (EAC) will begin the mass installation of smart meters.

The new initiative is aimed at modernizing the way the monitoring and managing of electricity usage is done, offering more accurate readings and the potential for greater energy efficiency.

Cyprus ranked 20th out of 27 EU countries for the use of renewable energy in transport in 2023, reaching 7.28 per cent compared to 7.22 per cent in 2022.

ECONOMIC NEWS

Politis reported that the Yael Foundation intends to build a model Jewish school in Limassol by 2027, the first of its kind in Cyprus.

The investment is estimated at 50 million euros.

Construction work has already begun and it is in the Limassol area.

The school cover all levels of education up to high school, while there will also be a kindergarten.

It aims to serve up to 1,500 students (Including from other European countries).

In Cyprus, 96.73% of the value of real estate (at 2021 prices) is owned by Cypriot registered owners, 2.33% by foreigners and 0.94% by Europeans.

By province, foreigners own the largest percentage of land in Paphos (9.69%) and Famagusta (6.96%), followed by Limassol (5.88%), Larnaca (5.08%) and Nicosia with 1.50%.

The auditor general’s office has blamed the contractor for the termination of the Paphos-Polis road, saying that state authorities were not responsible despite having added to the delay.

Greek company Aktor (formerly Intrakat), which undertook the project in 2022, sought over €35 million in damages after the contract’s termination by the public works department in November last year. 

Kathimerini reported that the project has become a financial and legal mess, with millions already spent but little to show for it. Delays, contract disputes, and a legal loophole are holding up the project’s completion, raising serious concerns about how public contracts are managed in Cyprus.

Cyprus will roll out a pilot version of its e-kalathi platform today , allowing consumers to track real-time prices of 478 essential household products.

The initiative aims to enhance price transparency and help shoppers compare costs across 22 participating supermarkets.

Deputy Shipping Minister Marina Hadjimanolis visited Doha from February 4 to 6, so as to strengthen maritime ties.

06/02/25

ENERGY NEWS

The Minister of Energy, Trade and Industry, George Papanastasiou, pointed out that energy is connected to everything and is a key topic of discussions worldwide, noting that strength lies in unity. Cohesion and cooperation between EU member states are needed to address the challenges.

He was speaking at the 14th Athens Energy Summit. He also noted the environment of uncertainty created by the new US policies and the wars, with Europe being affected because its heavy industry cannot be competitive. He also said that discussions are underway with the Egyptian government on the exploitation of the gas fields in the Cypriot EEZ.

ECONOMIC NEWS

Cyprus remains among the Eurozone’s five most expensive countries for both housing and consumer loans, according to December data from the Central Bank of Cyprus.

Housing loan interest rates rose to 4.75% in December 2024, up from 4.50% in November, significantly above the Eurozone average of 4.15%.

Consumer loan rates increased to 7.20% from 6.99%, while business loans up to €1 million rose to 5.11% from 5.01%.

Despite political pressure on banks to reduce borrowing costs, including a December 2024 gentleman’s agreement between the government and two systemic banks, rates continue to rise.

The Bishobric of Limassol submitted an environmental study for a project costing €379 million. It includes the establishment and operation of a University, various primary and secondary educational institutions, research and development centers, cultural centers and other facilities.

Eurobank Cyprus has renewed its cooperation agreement with Cyprus Seeds, a non-profit organisation focused on the commercialisation of innovative academic research.

Cyprus betting revenues €292 million rose 13 per cent year-on-year during the third quarter of 2024.

05/02/25

ENERGY NEWS

Cyprus has concluded exploration activities in blocks 2, 3 and 9 of its Exclusive Economic Zone (EEZ) after licenses expired without renewal, as Korean state firm Kogas exits the region.

Energy Minister George Papanastasiou confirmed that investigations failed to identify commercially viable natural gas deposits in these areas. The development sees Kogas, which held 20% rights in the three blocks, departing from Cyprus’s EEZ.

Italian energy giant Eni, which led the consortium, will continue operations in blocks 6, 7, 8 and 11 in partnership with French firm Total.

Cyprus plans to sell the entire output from one of its two offshore gasfields, Chevron’s Aphrodite, to Egypt which has recently seen its own output decline and in order to meet drastically rising local demand.

According to the Middle East Economic Survey, Egypt is set to sign two deals in Cairo on February 17 that it hopes will help secure gas from the two offshore Cyprus gas discoveries that are closest to development: the Chevron-operated 3.5 tcf Aphrodite, and the Eni-operated 2.5 tcf Cronos.

Philenews reported that a new round of discussions on the Cyprus-Crete electricity interconnection will be held tomorrow in Athens by the Energy Ministers of Cyprus and Greece.

This time, everyone’s attention, including the two ministers, is focused not only on the technical and legal issues pending regarding the interconnection project, but mainly on Turkey’s apparent intention to prevent the carrying out of surveys in maritime areas that it arbitrarily claims fall within its continental shelf.

As the Greek media have written many times in recent days, the Greece is very concerned about the indications it receives from the Turkish Government, according to which the research off Crete and Kasos, even without falling under the so-called Turkish-Libyan memorandum, will each time cause the departure of Turkish warships, which will require the Italian company carrying out the research to request and receive permission from the Turkish Authorities.

The talks will also cover the serious technical and financial pending issue concerning the transfer of the project from ADMIE to the subsidiary company Great Sea Interconnector, in which there is an intention from the Cypriot Government to purchase share capital.

At the previous meeting it was agreed that the Greek Minister, in collaboration with ADMIE, would prepare and send to the Cypriot Minister a detailed position of the Greek side on the points raised.

Those points of objection had come from the legal due diligence study, by Curtis, Mallet-Prevost, Colt and Mosle LLP, which act as external advisor to the Republic of Cyprus.

That study warned, among many other things, the Government that if it purchases share capital in GSI, it would be embroiled in an economic adventure with very negative consequences.

The letter by the Greek Minister has not yet been sent yet.

It should be noted that the publications (initially by Bloomberg) about a comprehensive agreement between ADMIE and rench investment fund Meridiam, for the Fund to purchase 49.9% of the current share capital in GSI, had no follow-up.

Unconfirmed reports state that the new president of the Cyprus Energy Regulatory Authority (Polis Lemonaris), with other colleagues,  will also have contacts with the Greek Energy Regulatory Authority (ERA) and ADMIE.

Cyprus lost 167,000 megawatt hours of renewable energy in 2024 due to a lack of storage facilities, MPs were told, as households continue to face soaring electricity bills.

MPs on the House energy committee expressed disappointment over the wasted power, which could have been used during peak demand. They also criticised the government for failing to develop a strategy to store and distribute energy.

ECONOMIC NEWS

The legal framework for assigning a study on the future of Larnaca’s port and marina is currently being prepared by Cyprus’ attorney general’s office. This was confirmed by Larnaca Mayor, Andreas Vyras.

He said that the city has accepted the decision of President Christodoulides to assign the study to Greece’s port planning authority. The decision was made through a Cyprus-Greece state agreement.

Vyras stressed the need to complete the study quickly so a new investor can be found. He also raised the possibility of state-funded development.

Vyras also responded to recent criticism from former transport minister and current President of the Famagusta District Local Government Organisation (Yiannis Karousos) who accused him of not reacting strongly enough to the loss of the investment.

The mayor rejected the claims, stating that the municipality did everything possible to support the project. He emphasised that legal rulings had to be respected.

Despite Cyprus’ relatively modest trade volume with the US, the island could still experience indirect effects of US tariffs on European goods, warned Sofronis Clerides, professor of economics.

Clerides explained that while the direct impact on Cyprus might be limited, the broader economic slowdown caused by these tariffs could still affect the country.

Deputy Minister of Innovation Nicodemos Damianou met Greek Minister of Digital Governance Dimitris Papastergiou at the Cyber Intelligence Summit in Athens.

According to an official announcement, the meeting aimed to strengthen cybersecurity cooperation.

3.2.2025

Philenews reported that the procurement and installation of equipment deemed necessary to be added to the Prometheus ship, so as to be certified in the future as a floating storage and regasification unit for liquefied natural gas (FSRU), could require 8 months.

This means the plan of transporting it to a foreign terminal, so that it can be certified or rented, has been significantly limited. Also, it seems the chances of the natural gas terminal being able to operate in a year from now are very limited.

A project manager for the project needs to be appointed who will then need to appoint a contractor.

The upcoming agreement expected to be signed between Cairo and Nicosia for the transfer of the two Cypriot deposits, ‘Kronos’ and ‘Aphrodite’, to Egypt, is a natural continuation of the excellent relations between the two countries said the Minister of Energy.

Philenews reported that the Electricity Authority took the first step towards installing an electricity storage system in Dhekelia and it has reportedly committed that it will cover the cost of installing the batteries from its cash reserves. It has already published a tender.

Energy analyst Charles Ellinas in an op-ed notes that as the development of Cyprus gasfields gets closer, so the claims about their importance in supplying Europe’s gas needs get louder, totally oblivious to whether Europe needs such gas, and, of course, how oil and gas companies make investment decisions and where the most likely markets for the gas is.

Foreigners buying properties at a rapid pace will be discussed by the House interior committee, after concerns have been lodged that the sales are proceeding unchecked to the highest bidder.

Land acquisition by non-Cypriots is approaching a third across all districts.

The long and short term social and financial impacts of the trend are to be examined and solutions sought, MPs said, after data revealed that as many as 72 per cent of sales made in Paphos (56 per cent of sales went to third-country nationals and 16 per cent to citizens of the EU) over the past ten years, were to foreigners. In Limassol, Larnaca and Famagusta, the number of foreign sales approached 50 per cent while in Nicosia it is 15%.

Among the issues raised was the fact that ongoing purchases by foreigners are driving up property prices and creating a housing crisis for the locals.

Other concerns are the lack of background checks on buyers and the lack of criteria for touristic developers.

Despite the fact that the citizenship by investment scheme has been abolished, “golden visas”, whereby property buyers automatically acquire permanent residency, still exist.

The Cyprus Architects’ Association called for stricter controls and immediate amendments to laws governing the establishment and operation of tourist facilities.

The announcement follows concerns raised by MPs over unchecked investments by foreign individuals and companies.

Its intervention was prompted by reports regarding the development of a hotel in the Paphos area – understood to be the Israeli Fattal Group’s investment in Latsi – which has been plagued by multiple legal violations.

The association referenced the “general upward trend of tourist developments without the required permits, in violation of urban planning and environmental regulations.”

Nineteen European Union countries, including Cyprus, are calling for the European Investment Bank to boost lending for the defence industry.

The EIB, owned by EU governments, is not allowed to finance the production of ammunition, weapons or military equipment. To remove the prohibition, a majority of governments have to agree and some countries have expressed misgivings.

There was a 5.4 per cent increase in average gross monthly earnings for Cyprus employees in the third quarter of 2024, reaching €2,351, compared to €2,230 in the same period of 2023.

40 per cent of employees earned under €1,500, while 39 per cent earned between €1,500 and €2,999.

12 per cent earned between €3,000 and €4,499, 6 per cent earned between €4,500 and €5,999, and 4 per cent earned more than €6,000.

Some note that the impressive & disproportionate increase in the number of non-Cypriot employees (by 79.1%) and their average earnings (by 47.8%) from 2017 to 2023 (in some economic activities) creates the distorted impression of a general welfare of employees.

In an interview the DG of the Research & Innovation Foundation (Theodoros Loukaidis) said that Cyprus is among the top startup ecosystems worldwide. It is home to 12 universities, 9 research institutes, 7 Centers of Excellence and 500 startups, with more than 3,500 researchers and 4,000 people employed in the high-tech sectors. Since 2016, it has allocated €206 million to support R&I, supporting more than 510 beneficiaries.

12 per cent earned between €3,000 and €4,499, 6 per cent earned between €4,500 and €5,999, and 4 per cent earned more than €6,000.

Desalination plants will work on a continuous basis to help relieve the pressure on the dams and provide farmers with water, Agriculture Minister Maria Panayiotou said. Until now, the plants operations have been dependent on weather conditions.

Efforts are also underway to employ mobile desalination plants.

After a record-breaking year in 2024, extending the tourist season, enriching the tourist product and developing new markets are the goals for 2025, deputy minister of tourism Costas Koumis said. New markets are those that Cyprus does not receive large numbers from and with which there are no direct air connections – the US China and other Central Asian countries.

Philenews reported that many large Greek companies, which have invested in various sectors of the economy, are showing great interest in the Cypriot market. Over 1,500 companies of Greek interests are active in Cyprus.

Bank of Cyprus announced it would cut its ECB-linked base lending rate to 2.90% from 3.15%, effective from 5 February 2025, following the European Central Bank’s recent monetary policy decision.

The 0.25% reduction is expected to benefit approximately 12,000 borrowers through lower monthly repayments. An additional 8,000 borrowers with Euribor-linked loans are already experiencing rate relief, as the Euribor has declined to 2.59%.

Superhome Centre has been sold to Vasilitsi Diy Ltd for €94 million.

Ermes Department Stores, a subsidiary of the Cyprus Trading Corporation, held 51 per cent of the store’s shares while 49 per cent was owned by Secora BV, a Dutch-registered company.