Cyprus assesses economic risks and energy security strategies

A committee in Cyprus has assessed the negative economic impact of Middle Eastern geopolitical instability, warning of potential job losses and reduced tourist flows despite a temporary ceasefire. Minister Damianos highlighted at the 16th Nicosia Economic Congress that energy security is a national priority due to market disruptions in the Strait of Hormuz. The minister noted that Cyprus remains the only EU member state without electricity interconnections, leading to high domestic energy prices. Plans are underway to secure an agreement with ENI and Total by the end of April 2026 to utilize Cypriot natural gas by 2027. Additionally, the Bank of Cyprus published its annual financial report on March 31, 2026, confirming recent acquisitions and investments. CIBA and Invest Cyprus have signed a memorandum to foster foreign direct investment and improve the nation’s economic competitiveness. The government is attempting to transform these structural energy vulnerabilities into drivers for long-term reform.