"The European Union is seeking to recover up to €100 million from the Cypriot government after a Chinese-led consortium abandoned a gas import terminal project, which is now under investigation for corruption," reports the Financial Times on the developments surrounding the Vasilikos station.

The British financial newspaper provides readers with the history of the awarding of the €542 million liquefied natural gas terminal construction contract to the CPP consortium, aimed at reducing Cyprus's dependency on imported oil.

It then briefly describes the project implementation delays, the eventual collapse of the agreement a few days ago, and the consortium's appeal to an arbitration court in London.

The report focuses on the request from the EU's climate, infrastructure, and environment agency CINEA to the Cypriot government "to explain the use of European funds by September and prepare for the return of some of it."

The newspaper notes, citing Cypriot officials, that Cyprus has already received €69 million of the €101 million budgeted by the EU for this specific project.

It then adds that the European Public Prosecutor's Office has decided to open an investigation into suspicions of fraud in public procurement, misuse of community funds, and corruption.

As noted by the newspaper, the responsible Minister of Energy, George Papanastasiou, said that the government has requested a 30-day extension to respond to the EU, adding that the case puts the country at risk.

The report also mentions a statement by the President of the Republic that the previous government should not have chosen the specific consortium for the project, while also assuring that the project will proceed.

It is emphasized that the European prosecutorial investigation follows the January report by the Audit Office, which in its 142 pages describes multiple concerns about delays, increased costs, quality, and safety of the project.

In response to claims that the Chinese consortium has not been paid, Cypriot officials reply that ETYFA has fully met its contractual obligations, the FT report concludes.