The Greece-Cyprus Great Sea Interconnector, a major electricity link project, appears to be heading toward failure following a decision by the Independent Power Transmission Operator of Greece (ADMIE) to suspend payments to the French company Nexans, responsible for constructing and installing the subsea cable.

As Brief reports, sources from Athens and Cyprus indicate that the project is at risk due to increasing geopolitical tensions in the region. The presence of Turkish naval forces has obstructed deep-water surveys near Kasos and Karpathos, raising further uncertainty.

ADMIE’s payment suspension concerns a €70 million installment for February. Reports from Athens suggest that arrangements have been made with Nexans to prevent work from halting while minimizing financial risks for ADMIE.

In a statement, Nexans confirmed that it has received substantial payments since the project began, ensuring the ongoing construction of the subsea cable. The company emphasized its commitment to fulfilling contractual obligations and receiving payments as outlined in agreements with its client.

Nexans also reaffirmed its dedication to completing this critical infrastructure project, which is vital for regional energy security and the integration of renewable energy sources.

The Greek Ministry of Energy has taken over the management of the €1.4 billion contract with Nexans. The ministry has instructed ADMIE to temporarily halt payments until diplomatic efforts can facilitate the resumption of seabed surveys.

Despite the optimism expressed by Cyprus’ Energy Minister Giorgos Papanastasiou, sources in Nicosia suggest that Cyprus' Finance Minister, Makis Keravnos, remains concerned about the country's significant financial exposure and the growing geopolitical risks tied to the project.

Meanwhile, the "Ievoli Relume" vessel, which was conducting cable-laying operations, is now returning to Italy, where the second research vessel, "NG Worker," is also stationed.

The Greek Ministry of Energy has stated that the payment freeze is intended to prevent further financial strain on ADMIE until the Greek government determines the final route of the subsea cable. However, production of the cable continues.

High-ranking sources within the Greek Energy Ministry told local media that halting the project would be too costly, making continued production the only viable option.

It is also crucial to note that seabed surveys for the cable’s route between Greece and Cyprus fall under the exclusive jurisdiction of the Greek Ministry of Foreign Affairs.

Due to the diplomatic complexities surrounding the project, Athens has yet to secure full U.S. support for its completion. While a recent State Department statement acknowledged Greece’s leadership in regional energy projects, no concrete backing for the interconnector has been provided.

The project’s fate is expected to be a key topic during the March 8 meeting in Athens between Greek Prime Minister Kyriakos Mitsotakis and Cypriot President Nikos Christodoulides.