Publication

This commentary examines the role of the energy sector in facilitating Cyprus's economic recovery following the international efforts to support its banking system in 2013. The author argues that Cyprus's vast offshore gas fields have the potential to boost the country's long-term growth. These reserves could also lessen the European Union's dependence on foreign energy sources. However, the commentary notes that the persistence of divisions between the Cypriot state and the self-proclaimed Turkish Republic of Cyprus complicates the ability to exploit any offshore resources. The author concludes that a fundamental shift in relations will have to occur between Nicosia and Ankara in order to develop such reserves.