Cyprus' parliament enacted legislation on Friday, paving the way to set up a National Investment Fund to manage future revenues from the sale of natural gas discovered in its exclusive economic zone.
Though the first sales of natural gas are not expected to start before 2020, the setting up of the fund was turned into an urgent measure to counter claims by Turkey that the government, ran by the Greek Cypriot community, is trying to deprive the estranged Turkish Cypriots of their rights.
The setting up of the fund came just one day after an Exxon-Mobil and Qatar petroleum consortium announced the discovery of a natural gas field containing an estimated 5 to 8 trillion cubic feet of natural gas.
Cypriot President Nicos Anastasiades said the discovery has definitely placed Cyprus on the world energy map.
In a statement anticipating Turkish reaction, Anastasiades said the government is interested in promoting the rights of the entire population and urged parliament not to delay any further the passing of the hydrocarbons fund.
The leader of the Turkish Cypriot community, Mustafa Akinci, in a television interview insisted on his suggestions that the two communities should cooperate on energy issues and demanded that the gas be sent to Europe via a pipe passing through Turkey.
He even threatened that if Cyprus continues with gas exploration there may be rival drillings by Turkey in Cypriot offshore areas.
The government of Cyprus has time and again said that energy issues are within the competence of the government and not the communities, stressing that it would not be possible Turkish Cypriot to participate in decisions by the government they do not even recognize.
It has also said that building a pipe through Turkey would be unimaginable as long as Ankara does not recognize Cyprus as a state and tries to destroy it.
Parliament passed the legislation with a large majority. It struck out a provision that part of the revenues would go towards repaying the public debt, which currently stands at over 100 percent of GDP as a result of the 2013 near melt-down of the economy.
The amendment makes it clear that natural gas revenues will be divided equitably between the communities and will be spend on social projects, such as education and health, rather than on financing government operations.
Editor:Cherie
