Forbes: Does Cyprus Hold The Key To Europe's Energy Woes?

Seizing on concerns about the impact of a possible halt in Russian gas through Ukraine, Cyprus’s leadership are boasting about the island nation’s energy potential from Nicosia to Berlin. Speaking to reporters in Berlin last week, Cypriot President Nicos Anastasiades suggested that the country’s recent gas discoveries could help provide an alternative to those European countries most dependent on Russian natural gas.

“Cyprus should be developed into an energy centre that helps to reduce other dependencies,” Anastasiades told Reuters following a meeting German Chancellor Angela Merkel.

Following a 2009 pipeline closure over a price dispute between Ukraine and Russia, Brussels has made a concerted effort to diversify natural gas import options for Europe, including increasing cooperation with North African suppliers, encouraging renewable alternatives and pushing for investment for the region’s interconnectors.

Despite easing dependence on Russian natural gas from 45 to 30 percent in the five years since the shutdown, Europe’s push has been limited by a series of setbacks on all fronts, not least the impact of instability across North Africa on hydrocarbon production and output.
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