EPPO Investigates Corruption in €101 Million LNG Project in Vasiliko

The European Public Prosecutor’s Office (EPPO) in Nicosia is investigating the liquefied natural gas (LNG) terminal project in the Vasiliko area on suspicion of procurement violations, misappropriation of EU funds, and corruption. The investigation began in March 2024; EPPO is already reviewing the bank accounts of politicians and current and former civil servants.

According to EPPO, the total project budget is €542 million, of which approximately €101 million was financed through the Connecting Europe Facility (CEF) program. Construction, which was supposed to be completed by December 2019, is still unfinished. The decision to open the investigation followed an audit report from January 19, 2024; materials were also submitted by the European Court of Auditors and the CINEA agency.

The investigation is conducted in cooperation with the police; hundreds of dossiers from ministries, state agencies, and Etyfa (the company managing the tender, a subsidiary of the Natural Gas Public Corporation – Defa, and the Electricity Authority – EAC) have been collected. Statements have been taken; according to press reports, politicians and senior officials are expected to be interviewed last. Police leadership and auditors are not involved in operational matters and do not make prosecution decisions.

For residents of Cyprus, this means potential additional delays in completing the terminal, uncertainty in gas supply diversification and energy security, as well as increased oversight of EU funds spending.