Important Events in Cyprus in 2025
Current events that may appear in the Cyprus culture and politics exam
🔋 Energy and Gas
Discovery of the Pegasus-1 Field
8 July 2025 — ExxonMobil and QatarEnergy discovered a large gas field in the Pegasus-1 well in block 10 of Cyprus’s Exclusive Economic Zone.
- Location: 190 km southwest of Pafos (Paphos)
- Gas-bearing layer: ~350 meters
- Total reserves of block 10 (Pegasus + Glaucus): 8–9 trillion cubic feet
- Operator: ExxonMobil (60%), QatarEnergy (40%)
Gas Export Agreement with Egypt
17 February 2025 — Cyprus, Egypt, Eni and TotalEnergies signed an agreement to export gas from the Cronos field to Europe via Egyptian liquefaction facilities.
- Expected start of deliveries: end of 2027
- The Cronos field will be connected to the infrastructure of Egypt’s Zohr field
Great Sea Interconnector (GSI)
A submarine power cable project to connect Cyprus to the European power grid.
| Parameter | Value |
|---|---|
| Cost | €1.9 billion |
| Length | 1 210 km |
| Capacity | 2 000 MW |
| Route | Cyprus → Crete → Greece (→ Israel) |
| EU funding | €657 million |
December 2025 — The European Commission included GSI in the list of 8 priority European "energy highway" projects.
⚠️ The project has faced financial disputes and opposition from Turkey
Launch of the Competitive Electricity Market
1 October 2025 — Historic launch of the Competitive Electricity Market (CEM). For the first time, consumers can choose their electricity supplier.
- 17 market participants (2 producers, 8 suppliers, aggregators)
- 327 MW of renewable energy available for trading
- Trading sessions every 30 minutes
- The private sector has invested €800+ million in RES
Goal: to reduce electricity prices (second highest in the EU) and increase the share of RES.
🌊 Maritime Border with Lebanon
26 November 2025 — Cyprus and Lebanon signed a historic agreement on the delimitation of their maritime border in the Eastern Mediterranean.
Details:
- Venue: Baabda Presidential Palace (Lebanon)
- Signatories: Presidents Christodoulides and Joseph Aoun
- Negotiations lasted almost 20 years (since 2007)
Significance:
- Opens the way for oil and gas exploration in disputed blocks
- Reduces legal uncertainty for investors
- Lebanon remains without a maritime border only with Syria
- Strengthens Cyprus’s position as a regional energy hub
The agreement is based on the median line, similar to Cyprus’s agreements with Egypt and Israel
🇮🇳 Visit of the Prime Minister of India
15–16 June 2025 — Narendra Modi made the first visit by an Indian Prime Minister to Cyprus in 23 years.
Key agreements:
- India’s support for the IMEC (India–Middle East–Europe Economic Corridor)
- Plans for joint naval exercises
- Preparation of a Bilateral Defence Cooperation Programme (BDCP)
- Cyprus supported India’s bid for permanent membership of the UN Security Council
⚖️ Cyprus Tax Reform
The first major tax overhaul in 22+ years. Presented by President Christodoulides on 26 February 2025, approved by Parliament on 22 December 2025 (5 of 6 bills). Effective 1 January 2026.
Key Changes
| Measure | Before | After |
|---|---|---|
| Tax-free threshold | €19,500 | €22,000 |
| Top rate 35% applies from | €60,001 | €72,001 |
| Corporate tax | 12.5% | 15% |
| Dividend tax (SDC) | 17% | 5% |
| Deemed dividend (DDD) | in effect | abolished (2026+ profits) |
| Crypto assets | unregulated | 8% on gains |
| Stamp duty | in effect | abolished (with limited exceptions) |
Family Benefits (subject to income thresholds)
- Per child: €1,000 / €1,250 / €1,500 (1st / 2nd / 3rd+ child) per parent
- Housing / rent: up to €2,000 per parent
- Green investments / EV: up to €1,000
- Single parents: double deductions
📈 Credit Rating Upgrades
In 2025 all three leading rating agencies upgraded Cyprus’s credit rating to the "A" category.
| Agency | New rating | Outlook | Date |
|---|---|---|---|
| S&P | A- | Stable | 2025 |
| Fitch | A- | Positive | 2025 |
| Moody's | A3 | Positive | 2025 |
Reasons for the upgrade:
- Rapid reduction of public debt (down ~70 p.p. from the 2020 peak)
- Sustained budget surpluses
- Strong labour market (unemployment below 5%)
- Low inflation (~1%)
- GDP in 2024: +3.4%, forecast for 2025: ~4%
🔥 Forest Fires in Limassol
23 July 2025 — The largest fire in Cyprus’s history in the Troodos mountains (Limassol district).
Consequences:
- 2 fatalities
- ~125 km² of burnt area
- 43 houses completely destroyed
- 29 houses seriously damaged
- 10 countries sent assistance
4 August 2025 — Christodoulides requested a team of experts from the USA to investigate the fires.
🛡️ Defence and Security
Women in the National Guard
3 April 2025 — The House of Representatives passed a law allowing women to serve voluntarily in the Cyprus National Guard.
Arrest of an Iranian Spy
21 June 2025 — In Cyprus, a British citizen of Azerbaijani origin was arrested on suspicion of spying for Iran.
- The suspect conducted surveillance of the RAF Akrotiri base (the UK’s largest base in the Middle East)
- Also monitored the National Guard air base in Pafos (Paphos)
- Linked to the Islamic Revolutionary Guard Corps (IRGC)
- Israel confirmed that a terrorist attack against Israelis in Cyprus had been prevented
Extension of the Lifting of the US Arms Embargo
October 2025 — The USA extended the suspension of the arms embargo on Cyprus for another year (until 30 September 2026).
- The embargo was imposed in 1987
- Fully lifted in 2022
- Requires annual certification by the State Department
- Conditions: combating money laundering and banning Russian warships from entering ports
🚀 Space and Defence Industry
Creation of the Defence and Space Industry Cluster
15 December 2025 — The Cyprus Chamber of Commerce and Industry (KEVE) and the Cyprus Research and Innovation Enterprises Association (CRIEA) announced the creation of an autonomous Cyprus Defence and Space Industry Cluster (CyDSIC).
Goals:
- Uniting companies, research centres and universities
- Development of dual-use technologies
- Attracting foreign investment
- Participation in European Defence Fund (EDF) and European Space Agency (ESA) programmes
Context: Cyprus is seeking to join ESA as an associate member and is developing its 2025–2030 space strategy.
COSPAR 2025 Symposium
3–7 November 2025 — Cyprus hosted the 6th COSPAR Scientific Symposium (Committee on Space Research) in Nicosia.
- Theme: "Space research 2025: humanity’s challenges and celestial solutions"
- Participants from 20+ countries: heads of space agencies, researchers, industry representatives
- Held under the auspices of the Cyprus Space Exploration Organisation (CSEO)
🗳️ Elections in Northern Cyprus
19 October 2025 — Presidential elections in the unrecognised Turkish Republic of Northern Cyprus.
| Candidate | Result | Position |
|---|---|---|
| Tufan Erhürman | 62.76% | ✅ Winner |
| Ersin Tatar | 35.81% | Incumbent president |
Significance:
- Erhürman (Republican Turkish Party) supports the resumption of negotiations on the reunification of the island
- Tatar supported a "two-state solution" in line with Turkey’s policy
- Christodoulides welcomed the election result and expressed readiness for negotiations
🕊️ Negotiations on the Cyprus Issue
Informal Summit in Geneva
17–18 March 2025 — UN Secretary-General António Guterres held an informal 5+1 meeting in Geneva.
Participants:
- Cyprus: President Christodoulides
- Northern Cyprus: Ersin Tatar
- Guarantor states: Greece, Turkey, United Kingdom
- EU representative
Outcomes:
- The parties agreed on confidence-building measures
- A next meeting was scheduled (held in July in New York)
- Guterres announced the appointment of a Personal Envoy — María Ángela Holguín (Colombia)
Tripartite Meeting with Erhürman
11 December 2025 — First full meeting between Christodoulides and the new Turkish Cypriot leader Erhürman, mediated by the UN.
Agreements:
- Resolution of the issue of halloumi exports from Turkish Cypriot producers to the EU (by the end of January 2026)
- Increase of staff at crossing points
- Road widening at the Agios Dometios crossing point
- Possibility to arrange insurance and vehicle inspection at the Astromeritis and Derinya (Deryneia) checkpoints
Joint statement: "The real goal is a solution of the Cyprus problem with political equality, as described in UN Security Council resolutions."
🏛️ Larnaka — European Capital of Culture 2030
11 December 2025 — Larnaka was officially selected as European Capital of Culture 2030.
Details:
- Won in the final competition against Limassol
- Decision made by a panel of 12 experts
- Larnaka will share the title with Leuven (Belgium) and Nikšić (Montenegro)
- State funding increased from €6 to €10 million
- Melina Mercouri Prize: €1.5 million from the Creative Europe programme
Programme motto: "Common Ground" — culture as a means of bringing people together.
Context: This is the second time Cyprus has hosted the title (the first was Pafos in 2017).
🚢 Larnaka Port and Marina
Project history:
- May 2024 — Termination of the concession with Kition Ocean Holdings (Israeli–Cypriot consortium)
- January 2025 — Management of the port transferred to the Cyprus Ports Authority, of the marina to CMMI
Current status (2025):
- Greek fund HRADF appointed as adviser on the master plan
- Dredging works underway in the marina
- Budget for marina upgrade: €1.5 million
- Agreement with HRADF signed in May 2025
🏀 EuroBasket 2025
28 August — 14 September 2025 — For the first time in history, Cyprus became a host country of the European Basketball Championship.
Details:
- Co-hosts: Finland, Latvia, Poland
- Arena: Spyros Kyprianou Arena (Limassol) — 8 000 seats
- Group C: Cyprus, Greece, Spain, Italy, Georgia, Bosnia and Herzegovina
- Cyprus is the smallest country in the tournament’s history to host the championship
Important: Cyprus made its debut in the EuroBasket final stage (qualifying for the first time as a host nation).
🌍 Amalthea Humanitarian Corridor
Cyprus is a key hub of the maritime humanitarian corridor for delivering aid to Gaza.
Year 2025:
- August — Resumption of the corridor’s operation, dispatch of 1 200 tonnes of aid
- October — The President presented a 6-point plan for the reconstruction of Gaza
- The corridor is used to deliver food, construction materials and shelters
Partners: EU, UAE, USA, United Kingdom, UNOPS
🇪🇺 Presidency of the Council of the EU
From 1 January 2026 — Cyprus will hold the Presidency of the Council of the European Union (for 6 months).
Presidency priorities:
- EU enlargement
- Migration policy
- Mediterranean partnership
- Water resources
This is Cyprus’s second presidency (the first was in 2012)
🌏 Earthquake in Pafos
12 November 2025 — An earthquake of magnitude 5.3 in the Pafos (Paphos) area. Several buildings were damaged, no casualties.
📋 Brief Chronology of 2025
| Date | Event |
|---|---|
| 17 February | Gas agreement with Egypt on Cronos |
| 26 February | Announcement of tax reform |
| 17–18 March | Informal summit on Cyprus in Geneva |
| 3 April | Law on women in the army |
| 15–16 June | Modi’s visit |
| 21 June | Arrest of Iranian spy |
| 8 July | Discovery of Pegasus-1 field |
| 23 July | Fires in Troodos |
| 28 August – 4 September | EuroBasket 2025 (group in Limassol) |
| 1 October | Launch of the competitive electricity market |
| 19 October | Elections in Northern Cyprus |
| 3–7 November | COSPAR Symposium in Nicosia |
| 12 November | Earthquake in Pafos |
| 26 November | Maritime border agreement with Lebanon |
| 11 December | Larnaka — European Capital of Culture 2030 |
| 11 December | Tripartite meeting Christodoulides–Erhürman |
| 15 December | Creation of the defence/space industry cluster |
| December | GSI included in EU priorities |
❓ Possible Exam Questions
- Which gas field was discovered in July 2025?
- With which country did Cyprus sign a gas export agreement in February 2025?
- Who won the elections in Northern Cyprus in October 2025?
- When will Cyprus hold the Presidency of the Council of the EU?
- Which Prime Minister visited Cyprus in June 2025?
- What is the Great Sea Interconnector?
- What happened on 23 July 2025 in the Limassol area?
- What are the main changes introduced by the 2025 tax reform?
- What is the Amalthea humanitarian corridor?
- What law was adopted on 3 April 2025 regarding the National Guard?
- With which country did Cyprus sign a maritime border agreement on 26 November 2025?
- Which city was chosen as European Capital of Culture 2030?
- What is CyDSIC and when was it created?
- When was the competitive electricity market launched in Cyprus?
- Who is the UN Secretary-General’s Personal Envoy on Cyprus?
- Which international space forum took place in Nicosia in November 2025?
- When did the first meeting between Christodoulides and Erhürman take place?
- What rating did Cyprus receive from S&P, Fitch and Moody’s in 2025?
- Which major basketball tournament did Cyprus host in 2025?
- Which guarantor states participate in the negotiations on Cyprus?