New information from Phileleftheros suggests that the Cypriot Government and the Chinese state-owned company CPP have fully embraced the idea of a velvet divorce and give the impression that they are working harmoniously towards this direction.
\nTo reach some sort of resolution regarding the remaining works for the terminal at Vasilikos, the Floating Storage and Regasification Unit (FSRU) must be delivered to its owner, namely the state-owned ETYFA.
\nPrevious information from Phileleftheros confirmed that the Chinese side has made financial demands for the delivery of the vessel.
\nThe exact amount requested by CPP has not been confirmed, but it concerns tens of millions of euros, in addition to the approximately 190-200 million already spent by ETYFA for the conversion of the vessel \u2013 from the Galea carrier to the Prometheus FSRU.
\nThe Cypriot side does not consider the company\u2019s new demands valid. On the other hand, rejecting the claims at this stage may jeopardize ETYFA\u2019s acquisition of the vessel.
\nIntensive consultations are expected in the coming days to find a compromise, exclusively for the FSRU.
\nCPP does not seem to accept the option of waiting for the arbitrator\u2019s decision in London on all aspects of the dispute, delivering the vessel to ETYFA beforehand. The Cypriot company, on its part, refuses to pay what CPP claims unless there is a decision by the arbitrator.
\nWhat the legal advisors of the two companies will seek is a settlement that will take into account the Chinese economic claims (for the vessel only), but also ETYFA\u2019s desire for any final financial burden, beyond the provisions of the initial contract, to be based on the arbitrator\u2019s decision and not on bilateral negotiations.
\nOnce a settlement for the vessel is reached, the rest seems to be\u2026 easier now. As we have previously mentioned, neither CPP wishes to return to the Vasilikos site and resume work on the jetty, nor does ETYFA want to relive the adventure of stitching \u2013 unstitching with the people of the Chinese company.
\nTherefore, what should be expected is an agreement for the dissolution of cooperation regarding the projects in Vasilikos, presupposing, we reiterate, that an agreement will be reached for the delivery of the vessel to Cypriot hands.
\nIn the event of a divorce, the financial differences between the two sides (claiming millions from each other) will be left to be resolved through arbitration. Therefore, the continuation and completion of arbitration in London becomes particularly important for all parties.
\nFurthermore, ETYFA will seek another contractor to complete the jetty as well as the other projects on land, so that the terminal \u2013 with the addition of the FSRU \u2013 can operate at some point.velvet divorce. velvet divorce, Chinese state-owned company, FSRU<\/p>\n","protected":false},"excerpt":{"rendered":"
The Cypriot Government and Chinese state-owned company CPP are working towards a velvet divorce, focusing on resolving the remaining works for the terminal at Vasilikos. The Chinese side has made financial demands for the delivery of the Floating Storage and Regasification Unit (FSRU) to its owner, ETYFA, which could amount to tens of millions of euros in addition to the funds already spent. Intensive consultations are expected to find a compromise exclusively for the FSRU, with legal advisors seeking a settlement based on the arbitrator’s decision. Once a settlement is reached for the FSRU, an agreement for the dissolution of cooperation regarding projects in Vasilikos is expected. Financial differences will be resolved through arbitration, with ETYFA seeking another contractor to complete the jetty and other projects on land.<\/p>\n","protected":false},"author":5,"featured_media":13998,"comment_status":"open","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[7817,3038,11980,33,2152,7937,2577,1751,3475,4961,2950,7017,1227,10556,6117,4962,2110,4548,415,2121,148,450,1864,7378,1214,5402,1538,720,2173,7967,3878,812,114,10479,11979,1238,11647],"class_list":["post-13997","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-other","tag-acquisition","tag-agreement","tag-chinese-state-owned-company","tag-companies","tag-completion","tag-compromise","tag-concerns","tag-consultations","tag-cooperation","tag-cpp","tag-cypriot-government","tag-dispute","tag-divorce","tag-etyfa","tag-event","tag-fsru","tag-funds","tag-gas","tag-government","tag-land","tag-local","tag-london","tag-negotiations","tag-parties","tag-phileleftheros","tag-projects","tag-resolution","tag-rest","tag-settlement","tag-state","tag-state-owned-company","tag-storage","tag-top-news","tag-vasilikos","tag-velvet-divorce","tag-vessel","tag-waiting"],"acf":{"keyphrase":"","keywords":"","sourceimg":"","country-category":""},"yoast_head":"\n