Key underwater cable project poses dilemma for Cyprus

Significance

The talks yielded some progress but fell short of full agreement on the GSI project, a proposed underwater cable that would connect the electricity grids of Cyprus, Greece and Israel. Another round of talks is scheduled for September 19.

Impacts

• Disagreements over the GSI’s financing have strained the close relations between Greece and Cyprus.
• A delay or potential cancellation of the project poses a risk to Greece’s efforts to meet the EU-mandated carbon neutrality target by 2050.
• The project's viability may rest on a delayed liquified natural gas terminal in Cyprus.