FES CYPRUS NEWSLETTER NR. 69 / FEBRUARY 2018 Contents 1. Cyprus Problem ....................................................................................... 2 2. Hydrocarbons .......................................................................................... 4 3. Greek Cypriots ........................................................................................ 5 Economic Developments ........................................................................ 5 Domestic Developments ......................................................................... 6 Labour Relations and Trade Unions ........................................................ 6 4. Turkish Cypriots ...................................................................................... 8 Economic Developments ........................................................................ 8 Relations with Turkey ............................................................................. 8 Domestic Developments ......................................................................... 9 Labour Relations and Trade Unions ...................................................... 10 5. FES Cyprus Events ................................................................................. 11 FES NEWS - please follow and visit us on - Twitter.com/FESCyprus - www.FEScyprus.org - www.facebook.com/FEScyprus For subscription to this free newsletter please send an email to [email protected] 1 FES CYPRUS NEWSLETTER Nr. 69 / February 2018 1. Cyprus Problem Foreign Minister, Kudret Ozersay suggested that a solution could be found that would allow In February, Turkey escalated tensions using Greek Cypriots to pursue offshore drilling, on war ships present in the Cypriot EEZ effectively the condition that Turkish Cypriots were in postponing the Greek Cypriot hydrocarbon some way included in these endeavours. He exploration program within Block 3 which was suggested that the Turkish side “should contin- assigned to Italian energy company ENI. This ue acting in a deterrent manner and that if nec- also had an immediate effect on the Cyprus essary a bilateral delimitation agreement with issue as both the problem itself and natural gas Greek Cypriots for separate EEZs “might come are now interlinked despite Greek Cypriot onto the agenda”. diplomatic efforts to keep them apart. In response Anastasiades stated that the Turk- On February 15, President Anastasiades met ish Cypriot claims were unjustified, given that with UNSG Special Representative Elizabeth an agreement was reached on the matter by Spehar in order to explore the prospects for the former president Demetris Christofias and for- resumption of the negotiations. Following their mer Turkish Cypriot leader Mehmet Ali Talat. meeting Anastasiades clarified that negotiations The agreement provided that any decisions could not resume while Turkey was causing ten- concerning sea zones, the continental shelf and sions in the Cypriot EEZ. the EEZ, will be handled by the federal govern- ment post-reunification. According to Anastasi- On February 18, CNN Turk reported that Turkish ades, the government had submitted a bill to Cypriot leader Mustafa Akinci would like to see parliament that provides for the creation of a a compromise formulated as part of an interim fund, similar to the Norwegian sovereign fund, solution to resolve the issue of drilling in the to administer proceeds from hydrocarbons thus Cypriot EEZ. Akinci warned that if such a formu- “securing the interests of existing and future la is not found the Turkish Cypriots, along with generations of all Cypriots.” Newly appointed, Turkey would launch its own hydrocarbons Foreign Minister Nicos Christodoulides also exploration in the island’s EEZ. responded to the comments made by Turkish On similar lines Turkish Cypriot Economy and Cypriot officials stressing that the Turkish Cypri- Energy Minister Ozdil Nami stated on February ot side is using the hydrocarbons issue as an 25 that Cyprus’ hydrocarbons programme excuse not to return to the negotiating table. should be co-managed or frozen until a Cyprus He called on Turkish Cypriots to decide whether solution was reached. He also threatened that they want a future with Turkey or within a re- Turkey would prevent drilling plans in all of united Cyprus Cyprus’ EEZ blocks. Meanwhile Turkish Cypriot 2 FES CYPRUS NEWSLETTER Nr. 69 / February 2018 On 27 February, Spehar met separately with of the Greek Cypriot presidential election) Turkish Cypriot leader Mustafa Akinci. Spehar attracted criticism, Akinci said that “this issue reiterated that the UN has requested that all was only made public recently following the parties reflect on the way forward and that the inquiry of the media. It is out of the question to UN is waiting to hear their views for a common accept the efforts made to present this as an approach on the way forward. Asked whether interference in the elections in the south”. any leaders meeting should be soon expected, Spehar stated that for the time being the par- Turkish Cypriot leader Akinci congratulated his ties are conducting preliminary discussions. Greek Cypriot counterpart Nicos Anastasiades on his election victory and said “I hope Mr. Ana- On February 14, UN Secretary General Antonio stasiades during his second term will follow a Guterres stated that a solution to the Cyprus more realistic and constructive policy for a Problem was the best way of resolving the comprehensive settlement and peace in hydrocarbons dispute between Cyprus and Tur- Cyprus”. key. Guterres regretted that tensions over hydrocarbons exploration had escalated and Turkish Cypriot negotiator, Ozdil Nami tendered stressed that all concerned parties should do his resignation to Akinci following his appoint- ment as the minister of economy in the new their utmost to defuse tensions. He recalled that the Turkish Cypriot and Greek Cypriot government. Akinci said, that he was not think- leaders had previously agreed that natural ing of appointing a new negotiator at this point, as he did not want the negotiations to drag on resources in a unified Cyprus would lie within the competence of the future federal govern- in the same way for another 50 years. “Negotia- ment. tions can only be possible if a strategic frame- work emerges provided that the Greek Cypriot In a statement to the Turkish Cypriot public side experiences a mental transformation and news agency, the presidential spokesperson truly accept the political equality of Turkish Cyp- Baris Burcu said, that the map which had been riots”, Akinci added. He reminded that the UN presented to the UN as part of talks on territory Secretary General Antonio Guterres had not at the Conference on Cyprus had been returned appointed a Special Advisor to replace Espen upon the request of President Akinci. Burcu Barth Eide following the collapse of the talks at reminded that following the failure of the Con- Crans Montana: “This shows us that there is no ference on Cyprus, the Greek Cypriot leadership such urgency”. had announced that it had withdrawn all pro- posals it had put on the table during the confer- The Turkish Cypriot Ministry of Foreign Affairs ence. When the timing of the statement (which issued a written statement condemning an attack against a Turkish Cypriot vehicle in the came only a few days before the second round 3 FES CYPRUS NEWSLETTER Nr. 69 / February 2018 southern part of Cyprus. The statement called for military training until February 22. The initial on the Greek Cypriot authorities to take imme- Navtex was renewed on February 20 until diate action and punish those who carried out March 10, bringing the duration of the Turkish the crime. It noted that attacks against Turkish military exercises in the area to an implausible Cypriots have increased in recent months and 30 days. was becoming the norm and called on the Being under a blockade for two weeks, where it Greek Cypriot authorities to take serious action. remained immobilized at a distance of 50 km from the target, ENI’s drillship attempted for a second time on February 23 to reach Cuttlefish 2. Hydrocarbons but was again intercepted by Turkish war ships. As a result of the harassments, on February 26, On February 8, Italy’s ENI announced that it the drillship departed from Block 3 setting made a discovery of lean gas in the exploratory course for Morocco, where ENI has contractual well of Calypso, located in offshore Block 6 of obligations. the Cypriot Exclusive Economic Zone (EEZ). According to reports, Calypso is expected to Turkey claims it is acting on behalf of the Turk- hold somewhere between 6 to 8 trillion cubic ish Cypriots, who also have rights on the island’s feet (tcf) of natural gas compared to Aphro- natural resources. Moreover, Turkey does not dite’s 4.5 tcf found in 2011. According to a recognise the Greek Cypriot dominated Repub- statement released by the ENI, Calypso “is a lic of Cyprus, nor therefore that the Republic is promising gas discovery and confirms the entitled to the EEZ it has delineated with sever- extension of the Zohr-like play” into the Cypriot al of its neighbouring countries, or a continental EEZ”. shelf. In addition, Turkish Cypriots signed a Con- tinental Shelf Delimitation Agreement with Tur- The euphoria generated by the company’s key in September 2011. It is on this basis that announcement was spoiled on February 9, as Turkish Cypriots declared an EEZ of their own, ENI’s Saipem 12000 drillship was intercepted by which in effect claims that half of Cyprus’ EEZ Turkish