AGP Executive Report

Energy & Sovereignty: Cyprus condemned Turkey’s MoU with the occupied north for an undersea natural gas pipeline, calling it illegal and another step to entrench “faits accomplis” and integrate the north with Ankara. EU Finance: Ecofin approved Cyprus’ revised recovery and resilience plan, with Cyprus backing the Irish presidency’s push on market integration and supervision, while also aligning with EU priorities on competitiveness, security and governance. Critical Infrastructure: The defence ministry and Oev signed a memorandum to strengthen public-private cooperation on crisis management, protection of critical infrastructure and national resilience, including joint planning, training and support for security forces. Labour & Skills: A European Commission report says only one in four workers in Cyprus gained workplace learning experience in 2025, leaving Cyprus below the EU 60% target. Property Market: Cyprus logged a strong first half in real estate with 10,007 property sales worth €2.23bn, alongside signs the sector is shifting toward a more multi-speed regional model. Migration: Asylum arrivals in Cyprus fell 92% since 2022, with the minister citing improved trends amid ongoing regional pressures.

EU Parliament Cyprus Rights: The European Parliament has formally recognised women and girls in Cyprus as victims of crimes during the 1974 Turkish invasion, a move Turkey calls “null and void,” escalating a long-running dispute over accountability and reparations. Property Market Boom: Cyprus logged its strongest half-year on record, with 10,007 property sales worth €2.23bn between January and June, as momentum accelerated into June. Energy Exports Plan: Cyprus says it is preparing to start exporting natural gas from 2028 via Egypt’s LNG facilities, while also pushing an electricity interconnection with Greece and Israel. Co-op Banking Push: A new Pancyprian Cooperative Bank is launching a €42m public share offering (up to 42m shares) to restore cooperative banking after the 2018 collapse. Finance & Regulation: Bank of Cyprus confirms dividends will move fully to electronic transfers, while CySEC warns investors to use only MiCA-compliant crypto-asset services from July 1. Local Life: Larnaca port residents complain about dust from cargo operations; the municipality says new equipment could cut emissions by about 90%. Social Concerns: A study finds 93% of 18–35-year-olds in Cyprus have seen gambling content online, mainly via Instagram and platform algorithms.

EU-Turkey Row: Türkiye rejected a European Parliament resolution on Cyprus as “null and void,” accusing the EU of bias and backing TRNC’s response. Housing & Cost of Living: Cyprus’ Council Presidency push highlighted EU housing policy momentum, while in the US Orange County secured €500,000 for a countywide affordable housing access platform—an example of how centralised access can cut through fragmented waitlists. Banking Relief: Christodoulides said the government reimbursement platform for 2013 “haircut” losses will reopen for late applicants, with payouts capped and a new scheme planned for 2027. Media Switchback: Cyprus is proposing a temporary return to the older TV broadcasting standard after the July 1 DVB-T2 switchover left thousands without reception. Cyprus–Israel Cooperation: Elam praised growing Cyprus-Israel defence cooperation after a meeting with the Israeli ambassador. Local Governance Watch: MPs demanded a review of Limassol’s sustainable urban mobility plan after complaints about traffic, safety and disruption. Culture Spotlight: Cypriot filmmaker Tonia Mishiali discussed her Karlovy Vary competition film The Lion at My Back, centred on motherhood and migration.

EU & Cyprus Politics: Cyprus wrapped up its six-month EU Council Presidency, with Christodoulides highlighting progress on enlargement, the “One Europe, One Market” roadmap, and migration asylum implementation. EU Legal Pressure: The European Commission opened three infringement cases against Cyprus over anti-money laundering, tax information exchange, and banking data to OLAF. Cyprus Problem Talks: President Christodoulides met leaders of small parties that lost seats, with officials stressing “substance” and Turkey’s need for tangible steps. Energy & Markets: With the U.S.-Iran ceasefire collapsing in the Strait of Hormuz, fuel and LNG routes face renewed strain; Cyprus consumer protection chief says no safe fuel-price predictions. Finance & Business: Bank of Cyprus and Wealthyhood launched a co-branded investing app for residents. Regulation & Crypto: CySEC warned firms after MiCA’s transition end, while EU MiCA stablecoin rules are already triggering platform changes. Economy & Jobs: Cystat reports growth across Cyprus services in 2024, led by information and communication. Tourism: Jet2 says summer bookings are rebounding after Middle East uncertainty eased, with Cyprus among the strongest rebound destinations. Local Economy: Keo approved a €1.69m dividend; Cyprus beer exports fell sharply amid export issues.

Aid & Agriculture: Cyprus approved €6.35m in new foot-and-mouth support to clear remaining compensation claims, bringing total state backing to €39m, with €4.85m for standard files and €1.5m earmarked for sheep and goat farmers. Local Governance: Nicosia residents and businesses rejected the municipality’s €10.8m historic centre redevelopment plan, saying it’s too small and not transparent enough, and calling for far bigger investment. Health & Prevention: PASYKAF launched a major women’s wellness campaign urging regular check-ups and early detection, highlighting breast and gynecological cancers as key concerns. Justice & Corruption: The citizenship-by-investment corruption case involving former transport minister Mario Demetriades is set to start September 14, after court delays and upcoming defence motions. Digital Infrastructure: Cyta will acquire and upgrade the RedMax data centre in Latsia, aiming to open the first phase in early 2027 and create Cyprus’s largest privately owned data centre. Research & Medicine: President Christodoulides inaugurated the new Cyprus Institute of Neurology and Genetics building, a €31m project co-funded with the EIB. Missing Persons: Efforts to identify people missing from 1974 violence are getting harder as eyewitnesses age, with hundreds of Greek Cypriot cases still pending. EU & Turkey: The European Parliament backed Cyprus with a fresh report on Turkey and reunification, while also adopting a resolution on 1974 sexual violence. Business & Banking: Alpha Bank Cyprus advanced its digital transformation by fully implementing Salesforce Financial Services Cloud.

Foot-and-Mouth Support: Cyprus’ cabinet approved an extra €6.35m for FMD-affected livestock farmers, including €4.85m in compensation and €1.5m targeted support for sheep and goat producers, bringing total aid to €39m. Digital Banking Push: Alpha Bank Cyprus says it has gone live with Salesforce Financial Services Cloud to speed up customer service and strengthen its digital transformation. Finance Update: Ellinas Finance announced full repayment of its Series B bond, with all principal and interest paid and the bond now expired. Markets & Economy: CySEC reported collective investment assets at €11.2bn in Q4 2025, while Cystat said hybrid cars now make up over half of new passenger saloon registrations in H1 2026. Politics & Democracy: President Christodoulides told an Athens roundtable that democracy is being tested, citing institutions, technology and shifting public debate. Travel & Tourism: Jet2 reported a rebound in summer bookings, with Cyprus among destinations seeing the biggest percentage recovery after US-Iran talks. Energy & Shipping: Cyprus highlighted its role in international maritime policy during a London visit tied to the IMO. Community: Mall of Cyprus launched a “Back to School Supplies for ALL Children” drive collecting donations until 2 September.

Cyprus Peace Talks: UN chief António Guterres warned that momentum toward a Cyprus settlement is fragile, pointing to unfulfilled confidence-building measures and stalled plans like new crossings, demining and a shared solar project. Energy Security: Cyprus faces a severe electricity shortfall by 2030 unless the delayed Vassilikos gas terminal is completed, with MPs told the island’s only viable long-term path is finishing the project. EU Politics on 1974: A European Parliament vote on a resolution condemning sexual violence against Cypriot women during the 1974 invasion was branded “incomprehensible” by a German MEP, as debate continues over confederation vs two-state approaches. EU Finance: Finance Minister Makis Keravnos heads to Brussels for Eurogroup and ECOFIN meetings covering fiscal policy for 2027, digital finance and AI’s impact on cybersecurity. NATO & Turkey: At the Ankara NATO summit, Trump signalled a possible reversal on Turkey’s F-35 ban, but Congress pushback remains tied to Turkey’s S-400 system—an issue that also touches Cyprus and other allies. Monaco Bomb Case: A Ukrainian woman suspected in a Monaco bombing was found dead near Kyiv, while prosecutors say an intelligence officer confessed and two suspects were notified in the investigation.

Monaco Bomb Fallout: Ukraine says the woman suspected in last week’s Monaco parcel bombing, Anastasiia Berezovska, has been found dead near Kyiv with gunshot wounds, after an officer of Ukraine’s military intelligence allegedly confessed to killing her; two suspects were detained, deepening the cross-border manhunt tied to the attack on sanctioned tycoon Vadym Yermolaiev. Cyprus Economy: Eurobank Research reports Cyprus growth slowed to the weakest pace in ten quarters in Q1 2026, with domestic demand holding up while net exports weighed on performance. Digital Infrastructure: Cyta will acquire the RedMax Data Centre in Nicosia’s Latsia area, aiming to expand capacity with first commercial operations expected in early 2027. Construction Watch: Cystat data shows building permits jumped 44.1% year-on-year in Q1 2026, signalling continued momentum in housing and development. EU Aviation Tension: Cyprus is pushing back as the European Commission reviews state-aid rules for airlines, raising concerns about air connectivity for island routes. Cyprus Courts & Rights: A Cypriot lawyer has filed a lawsuit against Meta over alleged limits on political expression, challenging the platform’s ban on political ads and algorithmic reach.

Aviation & EU policy: Cyprus has submitted a six-part request to Brussels asking the EU to treat Larnaca and Paphos airports as “essential infrastructure” under upcoming state-aid rule changes, arguing the island’s geography makes air links vital rather than commercial. Public safety: MPs are pushing again for countdown timers at camera-controlled traffic lights, saying drivers need clearer signal timing and that modern tech should allow integration. Women’s protection: Police reported 18,409 cases of violence against women since 2021, with thousands of arrests and exclusion/protection orders, as lawmakers review domestic violence law and Istanbul Convention implementation. Health system strain: Makarios Hospital’s children’s cancer ward faced a severe staffing shortage, with renovations and construction noise disrupting care during a major overhaul. UN buffer zone warning: The UN’s Unficyp chief says Cyprus’ buffer zone remains fragile, citing military modernisation, Varosha concerns and risks to peacekeepers. Research investment: The Cyprus Institute of Neurology and Genetics opened a €31m campus extension, expanding labs and training with EIB support. Energy & green upgrade: The Electricity Authority and Defence Ministry agreed to replace about 4,400 outdated streetlights on National Guard bases with energy-saving LEDs. Crime update: Three Swedish-passport-holding teenagers are in custody after a violent assault on a Turkish Cypriot man in Famagusta; police are hunting a fourth suspect.

France-Turkey Defence Talks: France appears more open to selling the Franco-Italian SAMP/T air-defence system to Türkiye after Macron and Meloni met on June 25, a shift that will be closely watched in Cyprus given the island’s defence ties with Paris and the need to manage concerns from Greece and Cyprus. NATO Summit Focus: Türkiye opens the NATO summit in Ankara with a Defence Industry Forum, pitching its fast-growing defence sector and pushing for deeper inclusion in European security programmes. Cyprus Banking Update: Alpha Bank Cyprus reshuffled its executive committee, appointing Penny Spiliotopoulou as CFO while expanding the role of its private banking chief. EU Digital Privacy: The EU is reviving the “chat control” debate on scanning encrypted messages, after a narrow European Parliament rejection earlier this year. Local Tech & Research: Cyprus AI Expo 2026 wrapped up in Larnaca, while UNIC earned a global sustainability ranking and Cyprus Chief Scientist Demetris Skourides was recognised on LinkedIn for GovTech influence. Everyday Life: Skroutz Plus launched in Cyprus, promising lower shipping costs, and Cyprus resumed visa processing in Russia after a contract lapse.

Cyprus Aid Abroad: Cyprus has sent two firefighting aircraft to France via the EU’s RescEU mechanism as wildfires rage across southern Europe. Aviation Deal Watch: easyJet has agreed in principle to a sweetened takeover bid from US firm Castlelake, valuing the airline at up to £5.5bn, in a shake-up that could reshape Europe’s aviation landscape. CySEC Under Fire: Cypriot investment firms say CySEC is losing effectiveness, citing slow probes, inconsistent supervision and weak regulatory predictability. Economy & Homes: Cyprus’ property market is at a crossroads as demand and construction continue, but affordability and infrastructure pressures grow. Local Culture: Paphos students bring the Fythkiotika weaving tradition to life in a free exhibition-market supported by the municipality. Cyprus Problem & Europe: fresh debate continues over Nicosia’s Schengen push and what it means for security and the island’s long-running division.

Energy & Economy: ExxonMobil and QatarEnergy signed a declaration giving “marketable” status to Cyprus’ Glaucus and Pegasus gas fields, a milestone that still leaves big development decisions ahead as the company weighs an integrated Eastern Mediterranean strategy. EU Policy & Finance: Cyprus tax receipts rose 5.9% in Jan–May 2026 to about €3.1bn, but the new tax system hit personal income tax (down 2%) and stamp duty (down 71.6%), reshaping what the state collects. Local Governance & Society: Nicosia is exploring industrial tourism, pitching visits to working production sites like halloumi, dairies, wineries and ice-cream makers to diversify the visitor offer. Security & Diplomacy: Government spokesman Konstantinos Letymbiotis urged the state to avoid “negligence or delay” as he marked the Mari memorial, linking lessons from the 2011 explosion to Cyprus’ wider security challenges. EU Rules: New EU MiCA requirements tighten the reins on crypto platforms from July 1, with firms needing full licensing to serve EU clients. Transport & Travel: AJet launched direct flights from Bodrum to 22 destinations including a route to Nicosia, aiming for 200,000 passengers over four months. Politics: DIKO leader pressures President Christodoulides over cabinet reshuffles and state appointments amid coalition strain. Weather: Isolated showers and thunderstorms are expected today, with inland temperatures reaching around 37°C.

Crypto Regulation: Revolut will delist Tether’s USDT for European customers, with buying ending July 6, deposits stopping July 30, and full conversion of remaining balances by August 31—citing EU MiCA rules and “regulatory and risk considerations” after Tether opted not to seek MiCA authorisation. Cyprus Politics & Diplomacy: Cyprus House Speaker Annita Demetriou met Greece’s PM Kyriakos Mitsotakis in Athens, where he praised Cyprus’ EU Council presidency work and urged close coordination on the Cyprus issue. Local News: A truck fire in Strovolos sent heavy smoke over Nicosia; firefighters brought the blaze under control, with the articulated vehicle badly damaged and the trailer only slightly affected. Property & Occupied Areas: Northern business leaders criticised Cyprus’ legal push against displaced Greek Cypriot land deals, after a Lithuanian real estate agent was detained in France under an EU arrest warrant. Business/Finance: A new report ranks Cyprus among the world’s top destinations for wealth migration, highlighting its appeal for internationally mobile investors.

Crypto Regulation & Consumer Impact: Revolut will delist Tether’s USDT across its platform by August 31, 2026, with USDT purchases ending July 6 and deposits stopping July 30; any remaining balances will be converted to fiat after the deadline, citing EU MiCA compliance and risk concerns. Economy & Cost of Living: Cyprus inflation stays stubbornly high, with June CPI up to 3.1% and Eurostat’s June rate at 4%, as fuel, food and housing-related costs keep squeezing households. Tourism Jobs Pressure: June unemployment in Cyprus rose by 9.9%, with the tourism slowdown linked to the wider regional geopolitical crisis. Parliament & Business Funding: MPs are set to decide a rushed bill creating the Cyprus Business Development Organisation (KOAE), with the state facing potential Recovery Fund grant losses of €50m–€69m if approval slips. Social Policy: The Church of Cyprus launched a financial support scheme aimed at countering low birth rates, targeting families with third and subsequent children. Public Safety: Police say the ELPIS domestic violence SOS app has been used 27 times over the past year, with 457 women installing it since launch in July 2025. EU Aviation State Aid: Cyprus warns it could face economic and geographic isolation if proposed EU aviation state-aid cuts reduce support for airports and new routes. Cyprus-Greece Coordination: House Speaker Annita Demetriou met Greek PM Kyriakos Mitsotakis in Athens, with both sides stressing full coordination on the Cyprus issue.

MiCA Watch: ESMA updated its MiCA register by adding 37 newly licensed crypto-asset service providers, bringing the total to 280, with Cyprus leading the latest batch by securing six authorisations. Local Economy & Business: Limassol MPs and municipal leaders met to tackle everyday urban problems, with traffic reform and more state funding flagged as key priorities. Courts & Safety: Cyprus’ Supreme Court awarded a quarry worker €95,000 after overturning earlier blame in a 2010 machinery accident that left him with severe injuries. Aviation & Legacy: Cypriot business pioneer Nikos Shacolas, founder of the CTC Group and a major figure behind airport development, has died aged 98. International Crime Link: Interpol issued a red notice for a Ukrainian woman suspected in a Monaco parcel bombing targeting a sanctioned tycoon, with investigators saying she allegedly disguised herself as a man and fled via Italy to Germany. EU Politics: Greece, backed by Cyprus and Malta, pushed to soften parts of the EU’s 21st sanctions package, including a proposed Russian oil price cap.

Monaco Bomb Probe: Interpol has issued a Red Notice for Anastasiia Berezovska, a 39-year-old Ukrainian woman living in Germany, suspected in the parcel bombing that injured Ukrainian-born tycoon Vadym Yermolaiev and his family; prosecutors say she disguised herself as a man and may not have acted alone, with her last known sightings in Germany after a flight route via France and Italy. Cyprus Economy & Jobs: Cystat reports registered unemployment rose in June to 10,056, up from 9,153 a year earlier, with the biggest increases in public administration, education and health. Ports & Investment: Cyprus Ports Authority unveiled a €415m roadmap to revamp Larnaca port and marina through 2045, combining public funding and private investment. Business & Healthcare: ECM Partners expands Ygia Group via acquisition of Ygia Vision, boosting ophthalmology services under one brand. Tech & Education: Robotex Cyprus 2026 drew thousands to the University of Cyprus with robotics, AI and drones, while Kyprium says it’s in talks with universities to bridge graduate-employment gaps. Tax & Finance: Cyprus and Sweden signed a protocol updating their double-tax treaty to meet OECD standards and improve tax transparency. Tourism Signals: Israeli media report a gradual recovery in Cyprus tourism, driven by short flights and pricing.