No statements emerged following a two-hour meeting between Cypriot President and the Chinese ambassador regarding the stalled Vasiliko natural gas terminal project.
The Chinese state-owned company CPP, leading the construction, has taken a hard line. Just before the meeting, CPP issued a statement criticising the 2019 decision to choose them as the contractor, escalating tensions.
CPP is already in arbitration in London, demanding €200 million on top of existing compensation. They now propose a new arbitration within the existing one, held in Dubai. This suggests CPP is unwilling to complete the project without further funds.
Delays mean Cyprus could claim tens of millions in compensation from CPP. Sources say the Chinese ambassador denied responsibility for the impasse.
The unproductive meeting pushes the government to consider terminating the contract, reporting CPP to the EU, and exploring alternative options to complete the project.
Government priorities include securing the Prometheas FSRU vessel and deciding on further action if CPP confirms its refusal to complete the project.
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