Greece has halted its next payment to French cable manufacturer Nexans for the Great Sea Interconnector (GSI), a €1.4 billion project to link the electricity grids of Cyprus and Crete.
The Greek Power and Energy Authority (ADMIE), which manages the project, froze a €70 million installment due last Friday amid ongoing delays and geopolitical uncertainty. This follows a July standoff involving Turkish warships that disrupted seabed surveys near Kasos and Karpathos, stalling progress. ADMIE, having already paid €200 million, made the decision in consultation with Nexans and Greece’s Ministry of Energy to limit financial exposure without derailing cable production.
The Italian research vessel Ievoli Relume recently left Crete for Messina, Italy, joining NG Worker there, as surveys remain on hold. Maintaining these vessels, contracted through Nexans, incurs significant monthly costs. Nexans, in a March 6 statement, denied a full payment suspension, affirming that cable production continues as per its obligations.
Uncertainty persists due to Turkey’s interference, shifting U.S. and French priorities under Presidents Trump and Macron, and the risk of losing €160 million in EU funding from a €657 million Connecting Europe Facility grant approved in 2022. A prolonged delay could also trigger penalties. Under a Greece-Cyprus deal, ADMIE can recover 50% of costs—13% from the state and 37% from consumers—yet the project’s geopolitical value keeps stakeholders committed.
Cyprus Energy Minister George Papanastasiou called the payment pause “understandable” given Turkey’s actions, while President Nikos Christodoulides plans to discuss the issue with Greek PM Kyriakos Mitsotakis in Athens on Saturday. The GSI aims to end Cyprus’ energy isolation and eventually connect Israel to Europe via Cyprus and Greece, a goal of shared EU interest. A bilateral Greece-Turkey resolution remains a potential path forward, though challenges persist in sustaining investment momentum.