Cyprus Finance Minister Makis Keravnos has openly questioned the viability of the planned Cyprus-Greece electricity interconnection, expressing strong reservations over the release of €25 million to the project’s operator, ADMIE, despite previous government commitments.

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Speaking on Politis radio, Keravnos described the project as “frozen” and said the payment cannot be justified at this stage. He revealed that two independent studies, conducted by “highly credible institutions,” concluded that the interconnection is not financially sustainable.

“I find it unreasonable for taxpayers to pay €25 million for a project that is not moving forward,” he stated. “It is a false dilemma to claim that taxpayers pay instead of consumers, as all taxpayers are also electricity consumers.” He added that the government would not impose additional costs on households already struggling with high electricity prices.

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The minister’s stance contradicts a September 2024 decision by the Cabinet and President Nikos Christodoulides, which pledged to cover annual payments to ADMIE—up to €25 million per year until 2029—through the state budget instead of consumer electricity bills. The first installment for 2025 had already been included in the approved national budget.

Keravnos linked the project’s stagnation to geopolitical challenges, pointing to Turkish interference that has delayed crucial seabed surveys required to determine the final cost. He also questioned the European Commission’s allocation of €650 million to a project that, in his view, has yet to demonstrate meaningful progress.

Despite his objections, Cyprus remains bound by a memorandum of understanding with Greece. Under this agreement, funds can only be released if ADMIE justifies its expenses to the national regulator CERA. The regulator recently approved the first €25 million payment after ADMIE submitted invoices totaling €82 million.

Keravnos said his ministry’s position could change if the project begins to show tangible progress. While rejecting the notion of a diplomatic rift with Athens, he emphasized that his top priority is safeguarding public finances from “spending on a project that effectively does not exist today.”