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The European Public Prosecutor’s Office (EPPO) has opened a corruption investigation into the EuroAsia Interconnector, a $7 billion electricity project intended to link Israel, Greek Cyprus, and Greece through a 2,000-kilometer undersea cable.
The probe follows allegations of fraud and bribery involving €165 million ($195 million) in preliminary contracts and questions over how the project was awarded EU funds despite serious doubts about its feasibility.
The EuroAsia Interconnector, first initiated in 2010, is designed to connect Israel’s power grid with the European Union through a subsea cable stretching from Israel to Greek Cyprus, then to Crete and mainland Greece.
The ambitious project has been presented as a way to secure energy diversification for the EU, reduce regional isolation, and reinforce cooperation among the three countries.
According to sources cited by Cypriot daily Phileleftheros, investigators are examining how a private company with no prior experience in electricity generation or transmission secured the largest-ever EU grant for such a project, amounting to €658 million.
Within a year of the funding decision, the European Commission deemed the company incapable of carrying out the project due to its failure to attract investor financing and lack of technical expertise.
The investigation is expected to cover former officials from the administration of former Greek Cypriot leader Nicos Anastasiades, state officials who processed the application, and EU Commission staff who approved the funding.
Allegations include that politically exposed persons used their positions to promote the EuroAsia Interconnector in exchange for personal benefits.
Claims are also being reviewed regarding a Commission official who, after approving project funding, later took up employment with the company.
The European Commission reportedly urged the new Greek Cypriot government, after the 2023 presidential elections, to remove the company from the project. Eventually, Greece’s Independent Power Transmission Operator (IPTO) purchased the EuroAsia project from the private company for around €48 million, assuming responsibility for its continuation.
Meanwhile, French cable manufacturer Nexans threatened last year to withdraw unless it received an advance payment, raising further concerns over financing gaps. Greek Prime Minister Kyriakos Mitsotakis reportedly assured stakeholders that his government would cover potential losses to keep the project alive, leading to preliminary tenders.
The project has also faced geopolitical obstacles. The proposed cable route between Crete and Greek Cyprus cuts through waters off Antalya, which Türkiye considers part of its continental shelf.
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