Cyprus And Israel Near Final Agreement On Aphrodite-Isai Gas Field Management

by THEFUTURE.TEAM

November 21, 2025

Cyprus and Israel are on the brink of sealing a landmark intergovernmental agreement for managing the Aphrodite-Isai gas field, a development announced by Energy Minister George Papanastasiou during the 13th Energy Symposium in Nicosia.

Diplomatic And Strategic Milestone

The final draft of the agreement, incorporating comments from the Cypriot side, was recently submitted to Israel. With both nations aiming to sign by year’s end, this deal is pivotal in governing gas extraction in the area encompassing the small portion of the Aphrodite field extending into the Isai region of Israel’s Exclusive Economic Zone (EEZ). The accord further outlines a mechanism for compensating Israeli stakeholders, ensuring each party receives its due share.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Enhanced Stability And Regional Opportunities

According to Minister Papanastasiou, the evolving energy landscape in Cyprus’ EEZ reflects significant progress over the past year. These developments not only bolster stability in the Eastern Mediterranean but also open up export pathways for natural gas to European markets. Beyond exports, future domestic consumption of these resources may also be feasible, further strengthening Cyprus’ energy security.

Infrastructure And Field Development

The government is laying the groundwork for robust infrastructure to support gas extraction from multiple locations within the EEZ. A key example is the Kronos field in Block 6, which is set to be the first developed project. Its proximity to the existing infrastructure of Egypt’s Zor field facilitates a connection to a submarine pipeline leading to Egypt, where the gas will be processed and ultimately liquefied for export.

Innovative Processing Models For Aphrodite

In contrast, the Aphrodite field is advancing towards maturity with a different development model. The managing company is designing a floating processing unit directly above the field, channeling gas straight to an offloading point near Port Said. This approach expedites the transmission of dry, high-quality gas to Egyptian facilities, aligning with strategic export and market diversification goals.

Economic Implications And Future Prospects

The agreement marks a significant step forward as Cyprus transitions to contracts that enable the direct commercial production of its gas reserves. Negotiations for the sale of natural gas from the Kronos field are underway, with financial terms expected to enhance the project’s long-term sustainability. Furthermore, despite the current absence of a domestic processing facility for natural gas, plans are under review to potentially convert LNG shipments from Damietta for use in Cyprus via the established Vassilikos infrastructure.

Additionally, a memorandum of understanding between Energean and Cyfield is under examination as a potential framework for importing Israeli-sourced gas into Cyprus via dedicated pipelines. This initiative, among others, underscores the multifaceted strategy to fully leverage the nation’s natural resource wealth and secure its energy future.

The Future Forbes Realty Global Properties

Bank of Cyprus Upgrade Signals Fresh Optimism For Greek And Cypriot Banks

by THEFUTURE.TEAM

June 26, 2026

Regional Banks Enter A More Favorable Cycle

Bank of Cyprus and Eurobank are well positioned to benefit from a renewed re-rating of Greek and Cypriot bank stocks, according to Cyprus-based investment firm Roemer Capital, which upgraded Bank of Cyprus to a buy rating and reaffirmed its positive view on Eurobank.

The firm cited easing geopolitical tensions, resilient economic growth in Greece and Cyprus, lower funding costs and Greece’s expected transition to developed-market status as the main factors supporting the sector.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Roemer Capital also lowered its cost of equity assumptions, updated its forecasts following first-quarter 2026 results and extended its valuation horizon to the end of 2027, raising target prices across its banking coverage.

Bank Of Cyprus Gets The Largest Upgrade

Bank of Cyprus received the biggest revision, with Roemer Capital upgrading the stock from hold to buy and setting a target price of €11.10, implying potential total upside of 27%.

The firm highlighted the bank’s strong capital generation, profitability and projected 100% dividend payout, describing it as the strongest capital-return story among the banks under coverage. Roemer Capital maintained its buy rating on Eurobank, assigning a target price of €4.90 and forecasting potential upside of 28%. The report said the bank is well placed to benefit from loan growth, improving operating performance and merger-and-acquisition synergies.

National Bank of Greece and Piraeus Bank also retained buy ratings, with expected returns ranging from 25% to 36%. Optima Bank was upgraded to buy, while Alpha Bank remained at hold on valuation grounds.

Why Growth Still Sets The Region Apart

According to Roemer Capital, Greek and Cypriot banks continue to benefit from stronger economic fundamentals than many western European peers. The report pointed to faster economic growth, healthier balance sheets, low levels of non-performing exposures, capital ratios approaching 20% and strong customer deposit bases.

Analysts expect performing loans across the sector to grow at a compound annual rate of 6% to 8% through 2028, supported by private investment, digitalisation, green manufacturing, supply-chain expansion and a gradual recovery in household lending.

The report also said the conclusion of lending under the EU Recovery and Resilience Facility is unlikely to materially affect credit growth, as banks have already shifted back towards traditional commercial lending. Roemer Capital expects Euribor to remain between 2.2% and 2.5%, a level it believes should support both lending activity and net interest margins.

Geopolitics, Valuation And Market Structure Support The Case

The report said improving geopolitical conditions have strengthened the investment outlook, noting that Brent crude prices have largely returned to pre-war levels while Greek government bond yields have stabilised at around 3.5%. Although geopolitical risks remain, Roemer Capital believes the likelihood of a major inflationary shock or significant pressure on bank profitability has eased.

Another important catalyst identified by the firm is Greece’s expected promotion to developed-market status by FTSE Russell, STOXX and MSCI over the coming months.

According to the report, the reclassification should improve liquidity and attract a broader base of international investors. Roemer Capital also said Euronext’s acquisition of the Athens Exchange is expected to strengthen market infrastructure and increase international visibility, particularly for Bank of Cyprus and Optima Bank.

The firm noted that Bank of Cyprus has already benefited from its Athens listing, with average daily trading value increasing from less than €400,000 before its September 2024 move to nearly €6 million afterwards.

Economic Momentum Remains A Core Tailwind

Roemer Capital said both Greece and Cyprus have moved beyond post-crisis recovery and are now supported by private-sector-led growth. For Cyprus, the report highlighted recent tax reform and efforts to simplify the legal and regulatory framework, while also noting that limited foreign banking competition continues to support domestic lenders.

Overall, Roemer Capital expects Greek and Cypriot banks to remain well-positioned for profitable loan growth over the coming years.

Breaking news