Cyprus Seeks to Develop its Energy Sector in the Wake of its Bailout

Nearly a year has passed since Cyprus was confronted with the terms it had to meet to receive a 10 billion euro ($13.6 billion) bailout from the European Union and the International Monetary Fund. With the bailout, Cyprus avoided a sovereign default, but it has still fallen into a deep economic crisis that could last for years. Nicosia can profit from the attention of larger powers that want influence in the Eastern Mediterranean, but because of the geopolitical importance of the region, Cyprus will have little control over factors that influence the development of its energy sector. Overhauling the energy sector will remain a long-term goal for Nicosia even though such reform will not improve the country's economic situation in the short term.