AGP Executive Report

Cyprus–Japan Business & Shipping: Foreign Minister Constantinos Kombos met Japan’s Toshimitsu Motegi in Tokyo to deepen cooperation on maritime connectivity, shipping, technology and higher education, with both sides stressing the international maritime order. Energy & Geopolitics: Analysts say a possible US–Russia Lukoil deal could reshape sanctions and energy dynamics in ways that may open strategic opportunities for Cyprus. Construction Momentum: Cystat data show June building permits rising 18.3% year-on-year to 751, with permits worth €469.5m and plans for 2,122 dwellings. Primary Sector Support: Cyprus approved an extra €2m to expand a youth farming scheme as demand rises, aiming to keep the primary sector modern and competitive. Maritime Cooperation: Cyprus and India are lining up the next phase of shipping ties, including a Mumbai forum in November after their first Joint Maritime Committee meeting in Limassol. Industry Performance: Cyprus’ Industrial Turnover Index climbed 5% in July as local market strength offset export weakness. EU Budget Pressure: Seventeen EU states, including Cyprus, urged the Irish presidency to protect cohesion and farm funding in the 2028–2034 budget. Power & Innovation: Cyprus’ Chief Scientist took the innovation agenda to Japan, while an ECT Forum in Nicosia on Oct 8 will focus on AI and future skills for the labour market.

RRF Cashflow: Cyprus is set to receive €992m from the Recovery and Resilience Facility, with the latest week bringing €120m after milestone approvals, pushing total grants to about 70% already received and aiming for near-full disbursement by December 2026. Inflation Pressure: Eurostat data shows eurozone inflation rising to 3.8% in September, while Cyprus holds at 5.2% and Greece at 5.1%, with energy driving the jump. EU Budget Fight for Farmers: Seventeen EU leaders, including the Greek Cypriot administration, urge Ireland’s EU presidency to protect farm and cohesion funding in the 2028–2034 budget talks, warning cuts would weaken the EU’s “backbone” policies. Waste Management Under Court Threat: The European Commission has referred Cyprus to the EU Court of Justice over waste failures, citing landfill rules not being properly applied and gaps in an integrated waste treatment network. Agriculture Branding Push: The agriculture ministry says it is supporting more Cypriot products to win PDO/PGI status, highlighting olives as a key crop and pointing to CAP funding for rural modernisation. Social Inclusion Upgrade: A new autism day centre is planned for Strovolos, designed for up to 30 adults and built on state land, with services focused on skills and gradual integration. Maritime Cooperation: India and Cyprus held their first Joint Maritime Committee meeting in Limassol, covering maritime education, investment and cooperation under the 2017 merchant shipping agreement. Energy/Industry Deal Watch: Acwa Power reached financial close for the $2.5bn Rabigh 2 expansion in Saudi Arabia, a major combined-cycle project with carbon capture readiness.

EU Budget Push for Farmers: Seventeen EU leaders, including the Greek Cypriot administration, have urged Ireland’s EU presidency to protect the Common Agricultural Policy and Cohesion Policy in the 2028–2034 budget talks, warning cuts would “only weaken” the bloc and risk losing public support. Maritime Cooperation: India and Cyprus held their first Joint Maritime Committee meeting in Limassol under the 2017 merchant shipping agreement, focusing on maritime education, investment, policy exchange and cooperation at the IMO. Social Policy & Inequality: A Cyprus-focused analysis argues the country needs more targeted social protection to tackle inequality after the energy crisis, noting social spending is below the EU average. Waste Management Under EU Scrutiny: Cyprus has been referred to the EU’s top court over waste rules, with the Commission citing gaps in pre-treatment before landfill and insufficient treatment capacity. Autism Support in Strovolos: An autism day centre is planned in Strovolos, designed for up to 30 adults, with programmes aimed at skills, creative activities and gradual social integration. Energy Project Finance: Acwa Power says it reached financial close for the $2.5bn Rabigh 2 expansion in Saudi Arabia, a 2,313.5MW combined-cycle project with carbon capture readiness. Local Business & Jobs: Cyprus retail sales volumes rose 7% in August, while inflation is reported at 5.2% in September. Tech & Industry Culture: Teknofest Southeast wrapped up in Şanlıurfa, spotlighting robots and defence/industrial players, including Turkish Aerospace and Roketsan.

EU Waste Crackdown: Cyprus is back in the EU Court of Justice over waste-management failures, with the Commission saying 21% of waste still goes straight to landfill without proper pre-treatment and that Cyprus lacks enough capacity for mixed municipal waste. Social Infrastructure: President Nikos Christodoulides says a new autism day centre in Strovolos will support up to 30 adults (22+) with specialised programmes, built on state land after an architectural competition. EU Budget Fight for Agriculture: Seventeen EU leaders, including Cyprus, are pushing the Irish EU presidency to protect farm funding and keep Cohesion Policy and the CAP intact in the 2028–2034 budget talks. Maritime & Energy Tensions: Greece and Turkey continue clashing over the Great Sea Interconnector (GSI), with disputes over whether Turkey’s “coordination” means permission or just notification. Entrepreneurship in Rural Cyprus: Larnaca’s mountain communities are boosting tourism-linked microbusinesses—from workshops to gastronomy—while efforts like MountMed aim to preserve traditional know-how for younger generations. Education & Internationalisation: The University of Nicosia and University of Cyprus highlight new English-taught programmes and expanded international campuses to attract global students.

EU Budget Talks: President Nikos Christodoulides signed a joint letter with 16 member states ahead of the next EU Multiannual Financial Framework (2028–2034), urging protection for cohesion policy and the Common Agricultural Policy—key for Cyprus’ countryside, competitiveness and balanced development. Cyprus Inflation Watch: Eurostat’s preliminary estimate says Cyprus annual inflation held at 5.2% in September, unchanged from August, while the eurozone rate is estimated at 3.8%. Tourism & Connectivity: Nicosia’s tourism board promoted the capital in Athens under “Nicosia: Greece, we are waiting for you,” pushing stronger visitor flows and business links between Cyprus and Greece. Housing & Utilities: In Larnaca, police and local authorities responded to “chaos” at an apartment complex after complaints of meter tampering, unsafe conditions and illegal occupancy, including a fatal fall from a third-floor incident. Agriculture & Animal Welfare: Cyprus’ animal welfare awareness programme, launched in 2023, is set to expand to more schools and pupils, with the Agriculture Minister calling for stronger prevention and enforcement. EU Trade Pressure: Brussels warned that nearly a quarter of EU imports are rising at unusually rapid rates, with Chinese goods driving the trend. Maritime/Regional Policy: Cyprus signed a joint statement backing the reinstatement of UN restrictions on Iran under the snapback process.

EU Budget Fight: Seventeen EU countries, including Cyprus, signed a push to protect nearly €900bn for agriculture and cohesion in the 2028–2034 budget, setting up a direct clash with Germany-led calls for major cuts. Cyprus Economy & Inflation: The Cyprus Fiscal Council warns inflation’s energy shock exposed Cyprus’ vulnerability, urging targeted, temporary support instead of broad tax cuts. Energy Prices & Markets: Eurozone inflation jumped to 3.8% in September as energy costs surged, while dated Brent rose above $120, tightening physical oil markets. Maritime & Blue Economy: Cyprus’ Thalassa festival returns in Limassol on Oct 10 to spotlight shipping and the Blue Economy, with President Christodoulides set to open the event. Retail Demand: Cyprus retail sales volumes rose 7% year-on-year in August, led by non-food categories like clothing/footwear and household equipment. Local Governance & Housing Safety: Larnaca authorities and police are investigating “chaos” at an apartment complex over alleged meter tampering, hygiene issues, and illegal occupancy, including a fatal incident after a third-floor jump. Business & Services: PwC Cyprus appoints an international tax specialist to strengthen its Tax & Legal leadership, while Eurobank unveiled a winning design for a €2m autism day centre in Strovolos. Agriculture & Animal Welfare: Cyprus expands an animal welfare awareness programme to more schools, aiming to build a culture of responsible pet care from early ages.

Greece–Cyprus Power Cable Row: Turkey says any work on the Greece-Cyprus Great Sea Interconnector needs Ankara’s prior approval, while Athens insists no permission is required and the project will proceed under international law. EU Recovery Funding: Cyprus received nearly €120m from the EU Recovery and Resilience Facility after meeting reform and investment targets, including upgrades tied to renewable energy testing and smart grids. Inflation Pressure: Eurostat data shows eurozone inflation at 3.8% in September, driven by energy, while Cyprus remains at 5.2%—keeping cost pressure high for households. U.S.–Cyprus Business & Education Links: Marco Rubio marked Cyprus Independence Day by highlighting deeper U.S. ties in defense, energy, trade and the Fulbright English Teaching Assistant expansion. Energy Trading Corporate Move: Commodities trader Gunvor rebranded as Centalion and plans to redomicile its HQ from Cyprus to Singapore, expanding beyond oil into gas, LNG, power and metals. Fire Safety Support: Genikes Insurance renewed support for the Cyprus Fire Service with electrolytes, energy bars and operational gear for long wildfire and rescue operations. Maritime Incident: Russia detained a Cyprus-flagged cargo ship in the Gulf of Finland before allowing it to continue. Property & Utilities Dispute: A Larnaca apartment complex committee alleges illegal electricity/water connections, unauthorised occupancy and threats, calling for an immediate investigation. Maritime Research & Ports: ECONSHIP 2026 wrapped up in Chios with 126 papers and a focus on shipping, intermodalism and port research. Archaeology: Excavations at Fabrika Hill in Kato Pafos found an underground chamber reused over centuries, ending as a Byzantine church.

U.S.-Cyprus Partnership: Secretary of State Marco Rubio marked Cyprus Independence Day by saying Washington wants to deepen cooperation on trade, education (Fulbright English Teaching Assistant expansion) plus defence and energy. Energy & Geopolitics: A fresh flare-up over the Greece–Cyprus electricity cable has Ankara insisting on prior authorisation, while Athens says the project will proceed under international law. Maritime Decarbonisation: DNV’s Maritime Forecast to 2050 highlights energy efficiency as the most practical near-term route to cut emissions, with Greece and Cyprus shipowners already weighing retrofits and efficient options. EU Funding Push: Cyprus is among countries receiving over €9.8bn under NextGenEU, as the EU moves to complete Recovery and Resilience Facility payments. Shipping Research: ECONSHIP 2026 in Chios wrapped up with 126 research papers and a strong academia–industry focus on ports and intermodal challenges. Local Business & Innovation: NODES launched a startup accelerator in Limassol, offering marketing and go-to-market support (and possible investment) for product-ready teams. Education & Infrastructure: Cyprus’ Independence Day parade showcased new National Guard systems and drones, underlining ongoing upgrades to deterrence and operational capability.

Energy & Infrastructure: Cyprus Foreign Minister Constantinos Kombos says Turkey is blocking the Great Sea Interconnector, warning Ankara’s threats in Cyprus’ EEZ are jeopardising a roughly €1.9bn electricity link to Europe. Gas Pipeline Watch: Turkey issued a new NAVTEX for the Oruc Reis research vessel to survey a planned 101-km undersea gas pipeline connecting southern Türkiye with Turkish-occupied Cyprus, with construction aimed at 2028. Cost-of-Living Support: Cyprus Cabinet approved seven measures worth €70m, extending electricity subsidies through 2027 and renewing zero VAT rates on key essentials, plus a cut to heating oil excise duty. Local Business Climate: A Limassol Chamber barometer finds confidence slipping as energy costs, weaker demand and uncertainty rise, alongside persistent labour shortages and bureaucracy. Finance & Compliance: The Central Bank of Cyprus fined Banque SBA Cyprus €750,000 over AML/CFT compliance failures after a 2023 inspection. Player Protection: Cyprus’ 9th Safer Gambling Conference (Oct 12) will focus on protecting players and tackling illegal betting using innovation and regulation. Education & Skills: ARUCAD launched its 2026–27 orientation days across Kyrenia and Nicosia, urging students to “learn while you produce.” Security & Justice: Two Israeli men were remanded after police found over 27kg of ketamine plus other drugs in a Limassol Airbnb, following alleged resistance during arrest.

Maritime & Energy: Cyprus marked World Maritime Day 2026 in London under the theme “From Policy to Practice,” while Cyprus–India talks in Limassol focused on deeper maritime education, investment and business links. Gas Infrastructure: Turkey is preparing surveys for a new undersea natural gas pipeline linking southern Turkey to the occupied north of Cyprus, with the Oruc Reis vessel expected to carry out the work after NAVTEX. Electricity Interconnector: Turkey is asking France for advance written notification before work resumes on the Great Sea Interconnector, citing route concerns tied to its continental shelf claims. AI & Innovation: Cyprus plans to strengthen AI ties with Kazakhstan as Deputy Minister Nicodemos Damianou heads to Astana for an AI & Digital Bridge Forum. Industry & Economy: Cystat data shows Cyprus industrial output prices rose 4.2% year-on-year in August; Mall of Cyprus profit jumped 25.5% to nearly €6m. Housing & Energy Bills: A €20m home energy upgrade scheme opens Oct. 20, offering up to €32,000; Limassol’s affordable housing project is delayed to early summer 2027. Defence Industry: THEON secured new orders of about €50m, including night-vision goggles contracts for NATO-linked users. Health & Safety: A second dead bird at Athalassa is being tested for H5N1 after Cyprus confirmed its first case.

Industrial Prices & Energy Costs: Cyprus industrial output prices rose 4.2% year-on-year in August, with electricity supply up 11.6% and manufacturing up 2.2%, while mining and quarrying edged up 0.8%. Energy Transition Watch: The Fiscal Council warns climate and energy-transition delays could weigh on public debt, citing lagging storage, recycling and energy-efficiency planning. Electricity Security: Cyprus activated an emergency “capacity mechanism” clause under Article 34 to prevent a potential 2030 supply gap of about 720MW if gas and interconnection don’t arrive. Shipping & Ports: Deputy Shipping Minister Marina Hadjimanolis joined EU talks on keeping ports competitive amid energy, security and decarbonisation pressures. Transport & Connectivity: Cyprus and India discussed stronger air links and port infrastructure ahead of a planned Tsolaki visit. Local Business & Retail: Mall of Cyprus profit jumped 25.5% to nearly €6m in H1, while Jet2 rolled out app updates showing live flight times from 72 hours before departure. Fintech Oversight: Cyprus urged tighter fintech oversight and clearer consumer safeguards as digital banking and crypto blur boundaries. Agriculture & Halloumi: The agriculture ministry faces a deadline on halloumi PDO standards versus raising sheep and goat milk quotas, with decisions needed before a transition window closes. Roadworks in Nicosia: Traffic changes start Monday around the walled city as works on Konstantinos Palaiologos avenue enter a new phase.

Energy Affordability Push: Cyprus’ energy regulator says a special capacity mechanism clause has been activated to prevent a potential 2030 electricity gap, warning costs would ultimately fall on consumers. Cost-of-Living Pressure: The government reiterates relief is coming for households, but new measures are still being prepared as fuel prices keep moving faster than promises. Industrial Output: Cyprus industrial production rose 1.5% year-on-year in July, with mining and quarrying up 6% and water supply/materials recovery up 8.2%. Deep-Tech Momentum: University of Cyprus mapping shows the island’s deep-tech ecosystem has grown to 150+ start-ups, backed by nearly €1bn in research and innovation funding. AI for Safety: Larnaca’s Aradippou municipality is deploying AI-powered early fire detection via observation stations and a transmitter network. Urban Transport Debate: Nicosia mayor Prountzos revived the tram idea, arguing bus use remains far below targets due to infrastructure gaps. Port & Logistics Hiring: DP World Limassol seeks a CEO to lead day-to-day operations and future growth for the island’s biggest multi-use port. Defense & Local Tech: New Cypriot drones and air-defence systems are set to feature in the Oct. 1 parade, including a UAV unit and locally developed unmanned aircraft.

Cyber & SOC Modernisation: QRadar teams are being pushed to rethink SIEM migrations, with Elastic’s flexibility raising the stakes on preparation, exposure, and real-world data/usage patterns. Industrial Output: Cyprus industrial production rose 1.5% year-on-year in July, with manufacturing up 1.5% and standout gains in water supply/materials recovery (+8.2%) and mining/quarrying (+6%). EU Budget Pressure: Six “frugal” EU states are urging cuts to the next long-term budget, targeting the Multiannual Financial Framework size and priorities ahead of late-October talks. Blue Economy & Marine Restoration: Cyprus launched the EU-backed MEDCONNECT project (€3.5m EU contribution) to test 15 solutions for restoring Mediterranean coasts and ecosystems through 2029. Tourism Strategy: STEK says Cyprus must use AI and technology to shift toward higher-value, longer-season tourism, not just more arrivals. Defence Industry: The EU cleared five defence projects of common interest; Cyprus is set to join four, spanning drones, maritime/seabed defence, air/missile defence and eastern-flank watch. Business Support: An EU-backed €50m entrepreneurship scheme targets ~800 new businesses and 1,600+ jobs, with extra cohesion funding for research and urban restoration. Healthcare Tech Deal: TempraMed signed a Cyprus LOI with CPO Cyprus for proposed exclusive distribution of VIVI Cap™ and VIVI Epi™.

Tourism Strategy: Stek says Cyprus tourism must shift toward quality, higher value per visitor, longer seasons and faster tech/AI adoption, not just chasing more arrivals. Energy & Infrastructure: Greece denies plans to redesign the Great Sea Interconnector (GSI) route, insisting seabed surveys will follow the original design despite Turkey-linked marine park concerns. Cost of Living: Finance Minister Makis Keravnos promises a targeted package of new measures for the rising cost of living after cabinet discussions. Fuel & Inflation: Cyprus inflation data points to broad pressure from fuel and energy costs, with transport and energy driving increases that hit small businesses too. Agriculture & Livestock: The Agriculture Ministry seeks to replace ear tags with GPS trackers for livestock, aiming to modernize monitoring. Construction/Industry Safety: Orange County community leaders demand accountability from GKN Aerospace after a chemical tank crisis and a delayed return to full operations, pressing for long-term health safeguards. Tourism Connectivity: Hermes Airports reiterates that stronger air connectivity and ongoing upgrades are key to Cyprus’ tourism growth. EU Defence Industry: Greece will join four of five EU defence projects, including drones/counter-drone, maritime/seabed defence, space capabilities and air & missile defence. Local Governance: Cyprus’ golden visa scheme is set for tightening ahead of Schengen entry, with a review of thousands of cases.

Maritime & Trade: Cyprus shipping competitiveness is set for a Brussels push as Deputy Tourism Minister Marina Hadjimanolis heads to Connecting Europe Days to discuss ports, fleet renewal and decarbonisation. Energy Costs & Inflation: Cyprus fuel sales fell 1.4% in August as diesel topped €2/litre and CPI showed fuel price rises feeding through transport, energy and household budgets. Electricity Interconnection: Greece and France are weighing a reroute for the Crete–Cyprus cable to avoid Türkiye’s newly declared marine park, with seabed surveys still incomplete. Tourism & Connectivity: Hermes Airports says stronger year-round air links are key to tourism growth, while hoteliers urge AI and digital transformation to keep the sector resilient. Business & Industry: Island Oil rebranded as Island Energies to reflect a wider energy focus, and Cyprus’ biotech sector gets a boost via a Medochemie–Theramir manufacturing partnership. Digital Inclusion: CYENS’ Digital Kin platform is rolling out free smartphone training for seniors and rural users. Civic Tech for Peace: A new CPDC analysis tests anonymous digital participation tools for the Cyprus peace process using Remesh. EU Defence Industry: EU defence ministers named the first five European Defence Projects of Common Interest, targeting drones, maritime defence, space and eastern-flank surveillance.

Energy & Infrastructure: Cyprus-Europe electricity interconnection via Crete moves into a new phase as seabed surveys are set to resume, with Navtex and route mapping expected to be completed by year-end; the project’s shareholding is reshaped after Meridiam’s 66% stake, while Athens, Paris and Nicosia are also reading Ankara’s signals closely. Agriculture & Food Exports: Cyprus has submitted Athienou bread and loukoumi for EU Protected Geographical Indication status, with national approval already secured and an EC decision expected in 2027. Tourism-to-Farm Link: Cyprus’ agriculture minister urged tighter ties between Ayia Napa tourism and local farmers, fishermen and livestock producers, pitching visitors on “flavors” beyond sun-and-sea. Retail & Logistics: Jumbo plans smaller store formats in tourist areas, while expanding distribution capacity in Romania and Greece to support growth. Labour Market: Cyprus faces ongoing pressure from labour shortages in construction and hotels, alongside disputes over temporary agency work and rules for third-country nationals. Cost of Living: Food prices rose sharply across Europe since 2021, with Cyprus among the lowest increases, but households still brace for further pressure from energy and winter heating oil costs. Local Business Events: The Limassol Wine Festival runs until October 4, highlighting wineries, rural communities and vineyard replanting after last year’s wildfires. Industry Community: Fuckup Nights returns to Limassol on Sept. 29, spotlighting lessons from business setbacks.