Filenews 1 February 2026 - by Eleftheria Paizanou
There is a strong interest from Arab states and especially from Gulf countries for investments in Cyprus in the energy sectors.
During the last contacts that the President of the Republic had in Cyprus and abroad with high-ranking officials of Arab countries, there were discussions about investments in Cyprus, which are a priority for the Government.
The Minister of Finance, Makis Keravnos, in his interview with "F" stated that the Government, recognizing the role that Cyprus can play due to its geographical position, but also as an equal member of the European Union, as well as due to its economic results and the EU Presidency, proceeded with a campaign in neighbouring countries, to improve its relations, both politically and economically.
"Of course, there are also discussions about investments in areas where there are priorities and important needs. One of these sectors is the energy sector. Therefore, the discussions in these countries about investments also concern the energy sector," he added.
Referring to the Vasilikos terminal and the project of the Cyprus-Greece electrical interconnection, as well as the risks that exist, he noted that the Government has inherited serious problems in relation to important and large development projects, which were frozen. "Efforts are being made to move these projects forward, which is not simple, as various problems have crept in, such as legal, arbitration, etc.," he added.
At the same time, he states that the Government is able to manage all the issues that arise, stressing that there are safeguards to prevent the projects from being blown up.
In relation to the Vasilikos terminal and the arrival of natural gas, he said that the Government is waiting (from DEFA) for the suggestions of the French company on the next steps it will follow. "Regarding the issue of GSI, the recent positions from both Greece and Cyprus, at the highest level, by the Prime Minister and the President respectively, on the need to review the studies and on the important need to find additional and new investors, confirm that management is being carried out on a more rational basis to address all these problems," he underlined.
The increase in the price of fuel is going to go further
Referring to the imposition of the green tax, which should have been imposed in 2024, according to Mr. Keravnos, Cyprus is on an open line of communication with Brussels. As he said, this is a policy that presents contradictions, as our country does not have sufficient public transport but there is a request to impose a new tax on fuel, with the aim of pushing citizens to use public transport. "The implementation of this measure is being delayed in time, without having exhausted any room for discussion with the competent authorities of the European Union," he stressed.
Answering a question whether fuel increases will be imposed next year, due to the general European policy for the green transition, he underlined that this policy has been postponed for a year. "It is an issue that concerns the European Union at all levels at the moment, as it entails very high costs. At the same time, efforts are being made to promote the goal of the green transition without creating serious fiscal problems or at the expense of other policies of the European Union," he underlined.
ECOFIN's agenda is big and heavy
In the meantime, due to the Cypriot presidency of the Council of the EU, the Minister of Finance has also taken over the presidency of the Council of Ministers of Finance, the well-known ECOFIN. As he said, the Council's agenda is long, with issues related to the integration of markets, capital markets and the banking system, the digital euro and the reform of pension issues related to provident funds.
''The major effort is to channel private deposits, which are particularly high in the European Union, into productive investments, so that the competitiveness of the European economy can be improved and it can continue to show resilience. Through this competitiveness, it is sought to promote actions that are expected to bring greater prosperity to the citizens of the European Union," he concluded.
