The Cable Saga – European Public Prosecutor Targets GSI

Brussels’ irritation over the often contradictory statements by Cypriot officials regarding the feasibility and implementation of the Great Sea Interconnector (GSI) project is now visible. The long-running cable saga has taken a new turn with the confirmed investigation by the European Public Prosecutor’s Office (EPPO) into possible criminal offenses linked to the €1.9 billion project, funded by the EU, with no official clarification yet on the scope, targets, or individuals involved.

EU Commission Frustration and Delays

Sources from Nicosia indicate that the government has not received official details about the investigation, nor information about the individuals or entities involved. According to Kathimerini, the EU Commission expresses strong discontent over the delays caused by Nicosia’s stance, which negatively affect the project’s progress.

Reactions were sparked by recent statements from Cyprus Finance Minister Makis Keravnou, as the two studies he cited on GSI’s non-viability have not been officially shared with the Commission. EU spokesperson Anna-Kaisa Ikonen emphasized that the project is “of utmost strategic importance for the EU” and financially viable, having undergone extensive scrutiny before funding.

“It is the responsibility of all parties to honor their commitments. Any further delay harms Cyprus and all stakeholders,” she highlighted.

European Public Prosecutor’s Intervention

According to sigmalive, the investigation focuses on a suspicious €48.8 million transaction during the sale of the project from the Cypriot company Euroasia Interconnector to ADMIE:

• The amount was transferred from ADMIE to the Cypriot company
• Within days, the full amount was returned to ADMIE

The EPPO is now following the money trail, investigating whether it was split across other accounts or remained in the same account.

Feasibility Studies

• The first study, conducted by the U.S. law firm Curtis for the Cypriot government, predicted a major loss, exceeding the initial €100 million capital.
• The second study, conducted by Exergia, initially projected losses of millions, but a year later, in collaboration with the National Technical University of Athens (NTUA), presented a completely different outcome, estimating €8 billion in economic benefits over 25 years.

The GSI case now combines technical, financial, and legal uncertainty, with the risk of further delays and impacts on Cyprus’ energy isolation, a project Brussels considers crucial for the completion of the European energy market.