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FES NEWS - Please Visit Us on FES CYPRUS NEWSLETTER Nr. 30 / DECEMBER 2014 Contents 1. Cyprus Problem ......................................................................................... 2 2. Hydrocarbons ............................................................................................ 3 3. Greek Cypriots .......................................................................................... 4 Economic developments ........................................................................... 4 Domestic developments ............................................................................ 5 4. Turkish Cypriots ........................................................................................ 6 Economic Developments ........................................................................... 6 Domestic Developments ........................................................................... 7 5. FES Cyprus Events ..................................................................................... 8 FES NEWS - please visit us on - www.facebook.com/FEScyprus www.fescyprus.org 1 1. Cyprus Problem regarding harassment this is being done by the Greek Cypriot side which has excluded the Turk- During the month of November, the UN Gen- ish Cypriot side and is unilaterally drilling the eral’s Special Adviser on Cyprus, Espen Barth hydrocarbon beds around the island’ Eroglu Eide, continued his efforts to resume the said. The Turkish Cypriot leader also called on negotiations on the Cyprus Problem. These had Biden to persuade the Greek Cypriot leader to broken down in October after a Turkish explora- return to the negotiation table without any tion vessel, the Barbaros Hayrettin Pasa, preconditions. entered Cyprus’ Exclusive Economic Zone (EEZ), following the issuance of a marine advisory In search for avenues to overcome the impasse, (NAVTEX) by Turkey. This in turn led President Eide proposed a twin track process whereby an Nicos Anastasiades to temporarily suspend advisory panel would be set up to discuss the negotiations. future of hydrocarbons ahead of a settlement, but did not involve negotiations or co-decisions The Greek Cypriot side has made clear it will not in parallel to the negotiations proper. The return to the negotiation table unless Turkey panel’s ideas would not be part of a settlement withdraws the Barbaros from Cyprus’ EEZ and but an inspiration for the post settlement terminates its Navtex. The Greek Cypriots also management of resources. The proposal, how- reject any attempt to link the hydrocarbons ever, was rejected by both sides. issue with the negotiations. Turkey and the Turkish Cypriots stress that the Barbaros will Meanwhile, Socialist party EDEK and the Greens continue and accelerate its activities if the announced on November 26 that they would no Greek Cypriots continue to unilaterally exploit longer take part in the regular bi-communal for natural gas. They also demand that hydro- meetings Ledra Palace Hotel between Greek carbons be introduced into the negotiations. Cypriot and Turkish Cypriot parties. They argued Commenting on the Greek Cypriot side’s that there is no reason to take part in such precondition of the withdrawal of Turkish ves- meetings since ‘the Turkish Cypriot parties insist sels in the region, Ergun Olgun, the Turkish Cyp- on not condemning the on-going violation of riot negotiator said ‘our message to both the Cyprus’ EEZ.’ UN and the Greek Cypriot side is; we will with- On November 13, the European Parliament draw the Barbaros seismic research vessel as passed a joint resolution, condemning Turkey and when you stop your activities in the region. for its actions within Cyprus’ EEZ and demand- We are ready to do this simultaneously. How- ing from Ankara to immediately withdraw its ever, do not expect from us to stop our activi- vessels from the area. The resolution also urged ties unilaterally.’ Turkey to show restraint, to comply with its EU obligation to recognize the RoC and ratify the Meanwhile, the Turkish Cypriot leader, Dervis UN convention on the Law of the Sea (UNCLOS). Eroglu sent a letter to the US Vice President Joe Biden informing him about the Turkish Cypriot A written statement issued by the Turkish Cyp- side’s views regarding the hydrocarbon beds riot foreign ministry said that the decision of around the island. ‘The Turkish research vessel the European Parliament was unacceptable and is not in the same drilling area with the Greek has no validity. The statement, which also noted Cypriot vessels and the Turkish naval vessels are that the ministry had made attempts on many in international waters. If there is a question 2 FES CYPRUS NEWSLETTER Nr. 30 / December 2014 levels for the rectification of one sided state- natural gas within the Aphrodite field of block ments and mistakes taking part on the draft 12 instead of an onshore liquefied natural gas resolution, stressed that it was significant that (LNG) terminal, which is the government’s the resolution noted that there is a need more declared strategic priority. According to general than ever to reach a comprehensive solution in manager of Noble Energy in Cyprus, John Cyprus. Tomich, the company is considering the option of a pipeline running from Israel’s Tamar gas The Cyprus Problem was among the issues field, linking up with another pipeline at the discussed between the UN General Ban Ki- Aphrodite field which will then go on to Egypt. moon and the Prime Minister of Turkey, Ahmet Meanwhile the Tamar partners, US based Noble Davutoglu, on the sidelines of the G20 Summit and Israeli Delek have already struck a prelimi- in Brisbane. nary deal with Spanish company Fenosa to sup- ply gas to the latter’s LNG plant in Egypt. The British BG Group is also in advanced talks with 2. Hydrocarbons Israel to import gas supplies into Egypt and recently began similar discussions with the On November 8, President Nicos Anastasiades, Cyprus Hydrocarbons Company with the aim to Egyptian President, Abdel Fattah al-Sisi, and restore output at its LNG plant in Idku near Prime Minister of Greece, Antonis Samaras, Alexandria. Within this context Egypt and held a trilateral summit meeting in Cairo. They Cyprus agreed on November 25 to speed up discussed issues relating to regional develop- talks to export Cypriot gas to Egypt via an ments including Turkish actions within Cyprus’ underwater pipeline. According to energy EEZ and ways to deepen cooperation in areas of minister Giorgos Lakkotrypis Cyprus may start mutual interest. The summit resulted in signing selling natural gas to Egypt by as early as 2018. the Cairo Declaration, envisioned as an outline During a two-day visit in Cyprus starting on agreement between the three countries, which November 5, Israeli foreign minister Avigdor could lead to a commercial deal on hydrocar- Lieberman met with his Cypriot counterpart bons. According to Government Spokesman, Ioannis Kasoulides. Amongst others, they Nicos Christodoulides, a new tripartite meeting, discussed bilateral relations, energy issues and this time between Cyprus, Israel and Greece is the Cyprus Problem in light of recent develop- also being prepared. ments within Cyprus’ EEZ. On November 26, Meanwhile, Noble Energy announced that it is Kasoulides also met with his Lebanese counter- leaning towards regional pipelines as its part, Gebran Bassil. They agreed to strengthen favoured option for monetizing the Cypriot their relations in the energy sector as well as in 3 FES CYPRUS NEWSLETTER Nr. 30 / December 2014 areas such as search and rescue, tourism and billionaire, Wilbur Ross and Russian Vladimir defence. Strzhalkovskiy to the new board of directors of the bank. The board represents a new share- holder structure following a €1 billion capital increase in August. Moreover, Moody’s ratings 3. Greek Cypriots agency upgraded BoC long-term deposit ratings to Caa3 from Ca with a stable outlook, warning, Economic developments however, that the bank still faces challenges. Following the decision of the Supreme Court in By late November, the rift between Chrystalla October which declared a number of legislative Georgghadji and President Anastasiades 1 amendments to the Troika proposed fore- seemed to be leading to an end after the latter closures law as unconstitutional, Eurozone offered a new contract to the CBC governor, finance ministers approved at the Eurogroup which includes the original provisions of her meeting on November 6 the release of the next contract. Georgadji had altered two clauses in tranche of €350 million for Cyprus. her contract allowing her daughter, a lawyer working at the law office of Georghadji’s former On November 10, a delegation of the Troika husband to represent ex-Laiki Bank CEO established contacts to prepare the ground for Andreas Vgenopoulos whom the CBC had taken the sixth evaluation programme of Cyprus due to court. Furthermore, Georghadji raised her in January. The delegation remained on the annual salary by €10.000, which is in line with island until November 14. At this stage of the pay increases given to CBC permanent staff. programme efforts are expected to focus on Georgadji admitted to having made the changes initiating an insolvency framework, which, herself and that she had attached a note to the according to the bailout agreement, must be altered contract before returning it to the Presi- enacted by year’s end. The National Health dential Palace for President Anastasiades, Plan, the privatization of semi-governmental informing him of the changes. Mysteriously, the organizations and the complete
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