The Greece-Cyprus electricity interconnection, known as the Great Sea Interconnector, continues to face significant hurdles in its implementation.

Uncertainty surrounding the project remains high, particularly following Donald Trump’s election victory in the United States. Meanwhile, tensions in the Eastern Mediterranean persist, with memories still fresh of an incident last July when a specialized vessel, chartered by French construction company Nexans, was surrounded by Turkish warships while conducting seabed surveys in international waters between Karpathos and Kasos.

According to a report by Kathimerini Greece, ADMIE (Independent Power Transmission Operator of Greece) has frozen payments of €70 million in pending installments to Nexans. These payments were originally scheduled to be completed by the end of February.

According to sources, ADMIE’s decision was made in coordination with Nexans to ensure that production of the 900-kilometer-long subsea cable does not come to a halt. The payment suspension is reportedly aimed at minimizing the financial risks associated with the ongoing uncertainties.

The Great Sea Interconnector has reached another critical juncture, with its fate increasingly dictated by geopolitical factors. The €1.9 billion project requires continued support from both the United States and France to move forward.

A potential project failure could trigger financial penalties, including the activation of contractual clauses that would require ADMIE to compensate Nexans for its €1.4 billion construction contract. Additionally, ADMIE could face further compensation liabilities under the project’s regulatory framework.

So far, ADMIE has paid €200 million to Nexans and has also received a €160 million advance from the €657 million EU grant allocated for the project.