ENERGY: Turkish Cypriots offered gas share if Turkey recognises Cyprus EEZ

In a move to de-escalate tension with Turkey, Cyprus President Nicos Anastasiades has offered Turkish Cypriots a share of possible gas revenues if Ankara recognises Nicosia’s energy exploration rights.

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This is a response to a proposal tabled by the Turkish Cypriot leader Mustafa Akinci on sharing natural gas resources by setting up a joint committee.

Anastasiades has dismissed this idea, as such a commission could not get involved in managing the sovereign rights of the Republic of Cyprus.

He did counter-propose establishing an escrow account that would secure the Turkish Cypriot share of gas revenues, but only on the precondition that Turkey acknowledges Cyprus’ Exclusive Economic Zone.

It would also presume that Turkey ceases its drilling activity within Cyprus waters.

The president’s proposal foresees the creation of a bank account linked to the Hydrocarbon Fund, to which the Turkish Cypriot share from natural gas revenues, expected to be around 30%, will flow into, according to reports.

The Turkish Cypriot community will have the right to withdraw cash from the account after 2022, as state revenue from gas is expected after that date.

Anastasiades proposed that a mechanism be set up to inform the Turkish Cypriot community on decisions and developments regarding the country’s natural resources.

Meanwhile, as reported in the Turkish Cypriot press, EU Commission President Jean-Claude Juncker has replied to Akinci’s proposal stating that he agrees that the island’s natural resources should benefit both communities and play a part in resolving the Cyprus issue.

"The best way to do that is through a comprehensive solution," Junger told Akinci in his letter.

The President of the Commission also welcomed the informal meeting of the two leaders on August 9.