A months-long freeze on a planned electricity interconnection between Greece and Cyprus has escalated into a public rift, shifting from a point of tension with Ankara to a near-open dispute between Athens and Nicosia.

The atmosphere between the two capitals has soured after Cyprus Finance Minister Makis Keravnos questioned the project’s viability and cast doubt on a bilateral funding agreement. Though both governments have sought to downplay the spat publicly, officials privately describe high tensions as the project stalls.

Cyprus is now seen to be stepping back from its commitment to finance a share of the costs, leaving Greece to shoulder the project’s financial burden and its geopolitical risks, particularly Ankara’s objections. The Cypriot position effectively transfers responsibility for pushing forward the interconnection entirely to Athens.

Greece, meanwhile, has spent significant diplomatic capital lobbying the European Union and key partners, including France and Italy, to secure support for the high-profile energy project. Officials say these efforts have brought little tangible return and have complicated domestic politics in Athens, which framed the plan as a strategic step toward regional energy security.

Adding to Greek frustration, Cypriot authorities reportedly withheld economic studies that questioned the project’s financial feasibility. Despite his criticism, Keravnos has remained in office, challenging an agreement signed by both states.

Greek officials, however, believe Cypriot President Nikos Christodoulides is unlikely to formally cancel the project, as Nicosia has already committed itself to the EU. Backing away would risk reputational damage for Cyprus, leaving Greece to manage fallout in Brussels while preserving its own credibility.

The dispute reflects deeper strains between two close allies whose cooperation is often shaped by regional energy ambitions and tensions with Turkey. For Greece, the interconnection remains a symbol of energy integration and geopolitical leverage, while Cyprus’ retreat underscores growing caution over costs and feasibility.

Diplomatic sources say Athens is continuing efforts to salvage EU support and secure regional backing. The project’s fate, they add, will signal whether Greece and Cyprus can navigate competing national priorities while presenting a united front on energy strategy in the Eastern Mediterranean.

Source: Ekathimerini.com