The Cyprus government is facing internal conflict over the future of the Gas Service Infrastructure (GSI) project, with two key ministers delivering opposing messages. Since September 2025, Finance Minister Makis Keraunos has consistently questioned the project's financial viability, citing concerns about fiscal risks and expressing skepticism about the €25 million funding approved by the Energy Regulatory Authority (RAEK).

In contrast, Energy Minister Michalis Damianou has actively supported the project, signing international funding requests and securing backing from the United States, framing the GSI as a strategic economic corridor. This contradictory stance has caused confusion among international partners, including the Greek government, which publicly criticized the mixed signals.

The ongoing disagreement has raised questions about the official position of the Cypriot government regarding the GSI, highlighting a rare example of institutional discord that could undermine Cyprus’s negotiating power and reputation in critical European and international energy collaborations.