The Crete-Cyprus power cable deal has taken a dramatic turn following yesterday’s contentious cabinet meeting, which failed to approve the preliminary agreement reached on Tuesday with ADMIE. Originally scheduled for the morning, the debate was first postponed to the afternoon and then delayed again, casting further doubt on the long-stalled project. Government insiders described the situation as “dismal,” raising serious concerns about the ability to reconcile the differences, with the agreement now appearing to be on shaky ground.

According to Cypriot media, the issue will be discussed at today’s emergency Council of Ministers meeting. Several hours of consultations have already taken place at the Presidential Palace, involving the President, Attorney General, Finance Minister, and Energy Minister.

Meanwhile, in Athens, intense discussions have been underway to finalize the allowable revenue (WACC) from the Energy Regulatory Authority, a condition set by Nexans to withdraw its ultimatum by tomorrow, September 6. Reports suggest the WACC, expected to be approved by the RAEY Plenary today, will be set at 7.2%, below the 9% threshold sought by the project operator, taking into account the geopolitical risks involved.