Cyprus’s location is of strategic importance to whomever controls the governance of this island. It is a gateway in the Mediterranean to three continents: Europe, Africa and Asia.

Strategic location and resources

Cyprus is a member of the European Union and is partly controlled by a powerful NATO member - Turkey. It is also a crossroads to countries in the Middle East and the Balkans, making it a coveted location for access to transport and logistics corridors.

Cyprus is a divided island country with contrasting religious, political and linguistic roots and allegiances. The north of Cyprus is aligned with Turkey, Islam and Turkish culture and language. The south is aligned with Greece, Christian Orthodox and Greek language and culture. Even the capital city of Nicosia is divided. United Nations “peace keepers” are continually deployed to reinforce agreements on the Green line or Attila Line. (see map)

The discovery of significant gas fields within Cyprus’s exclusive economic zone (EEZ)has reshaped its geopolitical landscape. Egypt and Israel have established EEZagreements with Cyprus. These agreements establish the foundation for cooperative energy initiatives, such as the possibility of transporting gas to Egypt for the export of liquefied natural gas (LNG).

Gas exports from Israel and Cyprus face political and commercial challenges and increased risk since the Hamas war started in October 2024. But with Israeli and Cypriot gas exports to Egypt continuing, there is a chance for Egypt to emerge as an energy hub in the Eastern Mediterranean. Egypt has already turned from an LNG importer to an LNG exporter in 2019, making Egypt a major player in the emerging East Med gas rush although politically, Egypt’s alliances have proven inconsistent at best.

The India-Middle East-Europe Economic Corridor (IMEEEC) is a proposed trade and transit corridor designed to improve connectivity and foster economic cooperation between India, the Middle East, and Europe. Stakeholders envision this corridor as a route strategically used for the movement of goods, services, and people, with the potential to significantly impact regional and global trade dynamics.

The IMEEEC initiative comprises two critical components – the Eastern Corridor, which links the Arabian Gulf with India, and the Northern Corridor, which connects the Arabian Gulf with Europe. This integration of rail networks, maritime transport, and other modes will interconnect renowned ports such as Fujairah, Jebel Ali, Abu Dhabi, Haifa, Mundra, Kandla, Piraeus, Marseille, and Messina.

The signatories’ countries of the IMEEEC corridor represent a substantial 40% of the world’s population and over 50% of the global economy. The potential economic benefits extend beyond Cyprus, offering regionally and internationally significant advantages.

However, this could be a basis for conflict in the near future. Greed is a mighty motive as history has proved, especially in this region.

The demand for energy is only increasing and the companies controlling supply and transport will benefit (see illustration below). ENI gas is an Italian company. Noble gas is a US/Texas company. Total is basically a French, international company. BP is a private, international company with historical ties to the UK. Novatek is Russian. Shell is multinational.

Competing Financial Players

Approximately 300 Russian-owned companies are worth 80 percent of the wealth of Cyprus, which earned itself the moniker of “Moscow on the Mediterranean”. By 2020, Russians had invested more than $200 billion in Cyprus, according to the Center for the Study of Democracy in Sofia, Bulgaria. This island of 1.3 million people is one of the world’s most consequential investments for Russia.

EU Golden Passport Schemes in Cyprus and Malta - Passports for a price

Read the full article on my substack - linked here.