Cyprus will not be blackmailed by Admie, asserted President Nikos Christodoulides on Sunday amidst rising tensions over the funding of the Great Sea Interconnector project. Reports have emerged indicating dissatisfaction from the Greek company regarding the Cypriot government’s commitment to pay only €25 million towards the project, which aims to connect the electricity grids of Greece, Cyprus, and Israel.
- In a related development, Mitsotakis convened a meeting with officials from the Ministry of Environment and Energy, along with Admie representatives, to address the ongoing disputes.
In a strong statement, Christodoulides responded directly to the head of Admie, saying, “If the head of Admie thinks that the Cypriot government is being blackmailed with such letters or paid listings, he obviously does not know who he is dealing with.” He emphasised that the government’s priority is to safeguard the interests of the Cypriot people and reiterated, “This is a clear message to the head of Admie.”
The contention arose after Admie objected to a decision made by the Cypriot government in July to contribute €25 million for the interconnector. Admie has requested that this decision be altered to cover the full costs of the project, which it claims amount to €251 million, to be justified via the energy regulatory authority (Cera).
In its response to a Phileleftheros report, Admie clarified that while it acknowledges the agreement for the initial €25 million payment, it does not recognise the €251 million claim as absolute. The company stated that this figure would be claimed over a 35-year period. However, it has sought a revision from Cera regarding its July 2025 decision, which recognised only €82 million of the expenses incurred to date, against the certified investment expenses that Admie claims.
When pressed on the matter, Christodoulides highlighted the existing framework agreement between the Greek and Cypriot governments, which he stated was solidified during discussions in New York with Greek Prime Minister Kyriakos Mitsotakis. He clarified that the Greek government does not dictate the communications from Admie, despite its significant shareholding in the company.
In a related development, Mitsotakis convened a meeting with officials from the Ministry of Environment and Energy, along with Admie representatives, to address the ongoing disputes.
According to an agreement signed in July 2024, Cyprus will only pay €25 million annually from 2025 to 2029 for the project, rather than covering construction costs as they arise. This approach is intended to provide financial stability for Admie while allowing the project to progress without immediate taxpayer burden.
Christodoulides confirmed that the €25 million has been allocated in the budgets for both 2025 and 2026. However, he also noted that “certain things” must be in place before the government proceeds with the payment. Energy Minister George Papanastasiou previously indicated that the first €25 million instalment would be contingent on the project being implemented in its entirety, cautioning that merely constructing cables would not suffice.
The Cypriot government initially planned to use funds from the European Union’s emissions trading system (ETS) to facilitate these payments, aiming to avoid placing the financial burden on taxpayers. In response, Admie has raised concerns that this arrangement could potentially violate EU state aid rules, prompting them to request that Cera begin charging consumers directly instead.
