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Natural gas sales to fund property compensations

4 November 2015

Funding for compensation for property will ultimately come from the income from the natural gas reserves lying in Cyprus’ Exclusive Economic Zone (EEZ) in the event of a potential solution to the Cyprus problem, diplomatic sources have told ‘Kibris Gazetesi’.

“Thus it is aimed to alleviate the concerns of the Turkish Cypriots that they will be forced to put their hand in their pocket”, writes journalist Ulas Baris in a report published on Tuesday. “Accordingly, the Northern Founding State, which, with the solution will have rights to the gas reserves found around the island, will cover the compensations to come up on property with the income to be acquired from gas sales”, he writes.

The report goes on to say that it has been estimated that the cost of implementing a solution to the Cyprus problem will be around 25 billion euro. It is anticipated that the cost will be covered by international finance organisations representing the North Component State. The money from the sale of natural gas from Cyprus’ EEZ will be used to repay the loans.

The International Monetary Fund (IMF) and the World Bank have been mooted to cover compensations for Greek Cypriot properties in the North. However both institutions are waiting for tangible progress on both sides at the negotiating table.

The report notes that the UN Secretary-General’s Special Advisor for Cyprus, Espen Barth Eide has made some contacts on the funding issue. It adds that President Akinci has stated that the USA is also interested in this issue and is ready to contribute.

Kibris Gazetesi

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