Crete-Cyprus-Israel Cable: Greek Navy on High Alert Amid Strategic and Financial Risks

Research Operations Set to Resume by October

According to reports from Sunday newspapers, including Kathimerini, the subsea cable linking Crete and Cyprus is scheduled to resume research operations no later than October.

“The Hellenic Armed Forces are ready to respond to any scenario, undertaking any operational mission, whenever and wherever assigned,” sources with operational knowledge confirmed.

The research is expected to be carried out by the vessel NG Worker, escorted by Greek warships to secure the operations.

Naval Presence and Strategic Planning

Greece maintains four surface units, including frigates, across the area of interest spanning eastern Cyprus to Libya, under constant surveillance.

From early September, military exercises are planned in the operational area to prepare for the cable-laying activities.

The Greek defense planning considers potential Turkish interventions, similar to February incidents when a Turkish frigate blocked the research vessel.

“Greece is ready to safeguard the research and protect the Crete-Cyprus cable,” defense sources emphasize.

Financial Minefield

The Crete-Cyprus-Israel cable, costing over €1.9 billion, risks becoming a financial quagmire. Delays, escalating costs, and regulatory uncertainties threaten both Greek and Cypriot budgets:

• ADMIE officially reports expenditures over €250 million, excluding claims for delays and seabed research.
• Regulatory sources estimate total expenses above €420 million, including €19 million for vessel delays and €48 million for acquiring the project from Cypriot entrepreneur Nassos Ktoridis.
• European funding through the CEF program covers €164 million, with the remainder from ADMIE equity and loans.

Regulatory authorities (RAAEY and RAEC) have yet to approve the allowed revenue needed for ADMIE to recover its investment. Without approval, bank or private financing is highly challenging, putting the project’s financial viability at risk.

Strategic and Geopolitical Importance

The Crete-Cyprus cable is the first segment of the Greece-Cyprus-Israel Interconnection (GSI), vital for Cyprus’ energy security and regional energy integration.

Delays caused by Turkish interventions and the absence of strong international partners increase geopolitical risk. Greece is combining naval strength, military exercises, and diplomatic engagement to safeguard the project.

The Crete-Cyprus-Israel cable remains a strategically essential project, yet it faces high operational, geopolitical, and financial risks. The successful resumption of research and careful management of economic and diplomatic challenges are crucial to protecting consumers, state budgets, and the project’s strategic value.