Cyprus

Tamar, a natural gas platform off IsraelThe Eastern Mediterranean is never dull. The whole area – land and sea – has been contested for centuries. And now, it turns out to have natural resources. Over the last decade, the area known as the Levant Basin has been identified as one of the world’s more interesting areas for exploration.

The first gas finds off the Israeli coast have led to a reappraisal not just of other areas along the coast from Egypt in the South to Turkey in the North, but also of the coastlines around the whole of the Mediterranean – from Albania to Spain. And the entry of Exxon and Rosneft into Lebanon opens up the prospect of another new exploration area and may provide a key to the development of the Eastern Mediterranean as a whole. Read more

A week after the EU and the IMF announced their bail out plan for Cyprus, it is now clear how little consideration was given to the knock on implications of the proposals. Even if they are never implemented, the ideas put forward might change the behaviour of those with funds in banks across southern Europe. But the proposals will have still wider implications – not least for Europe’s energy security.

The Russian reaction to the proposed bank deposit levy had been predictably furious. Surely someone in Brussels or Berlin could have foreseen what would happen? Did no-one realise that a good proportion of the Russian money in Cyprus belonged to people rather close to the Kremlin? Read more

The controversial bailout deal for Cyprus proposed by eurozone finance ministers has led President Nicos Anastasiades to promise investors who stay in the country after the compulsory forfeit of 9.9 per cent of their deposits that they will share in the country’s future wealth from natural gas.

In return for the forfeit they will be given shares in the banks and what are described in press reports as ” equity returns, guaranteed by future natural gas revenues”. Read more