Academic study analyzes geopolitical risks for the Great Sea Interconnector project

A new academic study published in The Journal of World Energy Law & Business by Thomas Nektarios Papanastasiou and Minas Lyristis examines the legal and financial vulnerabilities of the Great Sea Interconnector (GSI). The research addresses the critical question of liability should Turkey obstruct the underwater cable connecting Greece and Cyprus, potentially causing significant financial losses for investors, the implementing operator ADMIE, or consumers.

The authors highlight a significant legal vacuum, noting that traditional international investment law does not provide clear mechanisms for investors to claim damages when a project is disrupted by a third party not involved in the original agreements. The study cites the July 2024 incident involving the research vessel Ievoli Relume, which was forced to suspend operations near Kasos and Karpathos due to the presence of Turkish warships, as a primary example of these complex geopolitical risks.

The study concludes that existing contracts and legal frameworks are insufficient to manage state-level interference, leaving a protection gap for strategic energy infrastructure. It emphasizes the need for new de-risking mechanisms to address situations where neither the host states nor the investors are directly at fault, but third-country actions threaten the financial viability of major EU-backed energy projects.