Cyprus denies Russia loan for gas deal

RUSSIA has not asked Cyprus for an energy deal in relation to a multi-billion euro loan request by Nicosia.

Asked to comment on reports in the Press that Russia would give Cyprus a loan on the condition that it secures access to Cyprus gas reserves located in its Exclusive Economic Zone, government spokesman Stephanos Stephanou said that there has been no such a request on behalf of Moscow.

Last week Interfax news agency reportd that Russia and Cyprus had made no headway on a 5 billion euro loan from Moscow, quoting Finance Minister Anton Siluanov.

Russia has previously stated that it would only grant a bailout loan to Cyprus as part of a coordinated rescue with the European Union.

Late last year, Russia granted Cyprus a 2.5 billion euros loan, with a tenor of 4.5 years.

Two Russian firms are interested in Cyprus second round of licensing for hydrocarbon exploration in the country’s gas-rich Exclusive Economic Zone (EEZ). Gazprom and Novatek among 29 firms in the race for Cyprus second round of gas exploration.