Hydrocarbons can be a catalyst for enhanced regional stability and should serve as an incentive to reach a Cyprus settlement, said Judith Gail Garber, nominee for US Ambassador in Nicosia.
Garber told the US Senate Committee on Foreign Relations, if her nomination is confirmed, she would work to advance in Cyprus the fundamental US interest in a Europe whole, free, prosperous, and at peace.
“This is an important time for Cyprus…It is at this place that US national interests in anchoring the Euro-Atlantic Alliance, securing the Eastern frontier, and stabilizing the South intersect.
Our commitment to encouraging the leaders of the Greek Cypriot and Turkish Cypriot communities to forge a just and lasting settlement remains as resolute as ever,” Garber said.
She said the Republic of Cyprus is a valued friend and important strategic partner with whom the US cooperate on a range of priorities, including counterterrorism, maritime security, and law enforcement.
She added that Cyprus’ participation in the Global Coalition to Defeat ISIS, as well as its regional efforts to prevent the proliferation of weapons of mass destruction, demonstrate its commitment to international security.
“We are working to systematically strengthen our relations with the Republic of Cyprus, including in the areas of security cooperation and counterterrorism. If confirmed, I will continue this effort.”
Referring to the discovery of natural gas resources in the Eastern Mediterranean, including offshore Cyprus, Garver said this discovery has expanded possibilities for increasing regional energy security through diversification of resources, routes, and suppliers.
“We have emphasized our support of the Republic of Cyprus’ right to develop hydrocarbon resources in its Exclusive Economic Zone. We also believe the resources should be shared equitably between both communities within the context of an overall settlement.”
“Hydrocarbons have the potential, if managed correctly, to be a catalyst for increased cooperation, for enhanced regional stability and prosperity, and should serve as an incentive to a Cyprus settlement. If confirmed, I would seek to build upon this potential,” Garber pointed out.
According to Garber, Cyprus needs to modernise its foreclosure and bankruptcy laws, and accelerate efforts to reduce the high level of non-performing debt.
“It also needs to take more steps to combat the numerous challenges and risks posed by illicit Russian money in the economy.”
To sustain economic growth, Cyprus needs to control public sector spending, take steps to diversify the economy, and implement legal reforms to preserve confidence in the banking sector, argued Garber.
“We are encouraged by the progress local banks have made to boost regulations by culling suspicious accounts and hiring additional personnel to conduct due diligence. If confirmed, I will encourage the Republic of Cyprus to continue to strengthen its banking regulations and implement measures to limit the ease of shell company formation.”
Garber added that progress on a settlement could have a positive impact on the entire island’s economy and would create opportunities for greater trade and investment, bringing tangible benefits to all Cypriots.
