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Cyprus Government Cooperates Fully With EPPO On Vasilikos LNG Terminal Investigation

by THEFUTURE.TEAM

July 26, 2024

The Cypriot government is in full cooperation with the European Public Prosecutor’s Office (EPPO) regarding an investigation into the Vasilikos LNG terminal project. Initiated in March 2024, the investigation focuses on potential procurement fraud, misappropriation of EU funds, and corruption related to the construction of the terminal, which started in 2019 but has yet to be completed.

Background and Investigation Details

The Vasilikos LNG terminal project, a significant infrastructure initiative for Cyprus, aims to integrate the island into the broader European gas market, reducing its reliance on imported fuels and enhancing energy security. However, the project has encountered multiple delays and cost overruns, raising concerns about financial mismanagement and corruption.

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The EPPO, tasked with investigating and prosecuting crimes against the EU’s financial interests, launched the probe following reports from the Audit Office of the Republic of Cyprus and other European agencies. These reports highlighted irregularities in the procurement process, suggesting that funds allocated for the project might have been misused.

Government Response and Cooperation

Deputy Government Spokesperson Yiannis Antoniou has confirmed that Cypriot authorities are fully cooperating with the EPPO to ensure a transparent and thorough investigation. The government’s commitment to assisting the EPPO underscores its dedication to upholding the principles of fairness and transparency, essential for maintaining public trust and financial integrity within the EU.

“The government is determined to support the EPPO’s efforts and ensure that any wrongdoing is addressed appropriately. Transparency and accountability are paramount in projects of this magnitude,” Antoniou stated.

Broader Implications

The Vasilikos LNG terminal is critical not only for Cyprus’s energy strategy but also for its economic stability. Ensuring that the project is completed efficiently and ethically is vital for the country’s reputation and its ability to secure future EU funding.

This investigation by the EPPO serves as a reminder of the importance of stringent oversight in the management of EU-funded projects. It highlights the need for robust mechanisms to prevent and detect fraud, ensuring that public funds are used effectively and responsibly.

The Future Forbes Realty Global Properties

Competition Authority Launches Comprehensive Review of ExxonMobil Cyprus Acquisition

by THEFUTURE.TEAM

September 16, 2025

Investigation Initiated Over Strategic Acquisition

The Competition Protection Authority has commenced a thorough investigation into the acquisition of ExxonMobil Cyprus Limited’s share capital by Petrolina Holdings Public Ltd through Med Energywise Ltd. This inquiry was formally initiated following a session held on 10 September 2025, after an in-depth review of the pertinent report by the Authority’s Service.

Concerns Over Market Compatibility

Authorities have expressed serious concerns regarding the compatibility of the transaction with established competitive practices. The review indicates that the acquisition may affect several critical petroleum markets, both horizontally and vertically, thereby raising the potential for adverse impacts on market dynamics.

Horizontal Market Dynamics

On the horizontal front, potential effects have been identified in the import market for petroleum products, as well as in both wholesale and retail distribution channels of these products. The consolidation is believed to increase the risk of price rises and coordinated actions, given the direct competitive proximity between Petrolina and ExxonMobil.

Vertical and Adjacent Market Implications

Vertical aspects of the merger are also under close scrutiny. The new entity could restrict competitors’ access to critical infrastructure such as storage facilities, supply channels, and customer bases. These restrictions could further affect the onshore distribution of fuels, the wholesale market for lubricants, and specialized technical services connected with fuel station operations.

Local Market Considerations

Particular attention is being paid to the potential concentration in the retail fuel market. The investigation suggests that a reduced competitive landscape within a four-kilometer radius of the companies’ fuel stations could lead to diminished local competition, adversely impacting consumer prices and options.

Next Steps and Industry Impact

The Competition Protection Authority, which reached a unanimous decision to pursue a full investigation, remains open to submissions from parties that might be affected by this transaction, as mandated by current legislation. A final decision is expected within four months upon receipt of all necessary evidence, potentially setting a significant precedent for future market consolidation cases in the energy sector.