The US has made it clear that Cyprus has the sovereign right to explore and exploit its natural resources, following representations by Nicosia regarding earlier statements by a State Department spokesperson who had indicated that UN mediation would be welcomed with regard to revenue sharing from possible oil reserves.

Washington pointed out that securing energy supplies is a positive development and noted that increased energy supply from Cyprus would also be positive.

These remarks came in the wake of statements and counterstatements by Cyprus, Turkey, the Turkish Cypriots, the US and others relating to the start of drilling, by an American company for oil and natural gas reserves off Cyprus’ southeastern coast, within the Republic’s exclusive economic zone.

Department of State Spokesperson Victoria Nuland on Wednesday said that Washington “is interested in the proposal for UN mediation of revenue-sharing”, as regards the exploitation of oil reserves off Cyprus’ south-eastern coast.

Nuland called for “de-escalation of the tension and rhetoric” on dispute and commitment to “UN process for Cyprus reconciliation”.

Nuland’s statement followed a statement by UN Secretary General Special Adviser Alexander Downer on Tuesday that “if the two sides (Greek Cypriot and Turkish Cypriot) came together and asked us to play some sort of mediating role (in the controversy), the SG would have a look at that and we’d discuss it and look at what we could do”.

Downer’s statement sparked a reaction in Cyprus, where the government and the political parties condemned the statement, saying that UN role is to facilitate the peace talks and not to mediate.

Special Adviser Downer on Wednesday said that his statement was “lost in translation”.

Cyprus’ Ambassador in Washington Pavlos Anastasiades on Wednesday acted on this front, requesting clarifications on Nuland’s statements. According to diplomatic sources, Washington reiterated its position that Cyprus has a sovereign right to explore and exploit its natural resources, adding also that there would be a “correction” on Nuland’s initial statement.

During the State Department’s Regular Briefing on Wednesday, Nuland was asked about the presence of a Turkish seismic research ship close to Cyprus’ Exclusive Economic Zone where the American company “Noble Energy” is drilling for oil reserves.

Invited specifically to say whether Washington will raise the issue to the Turkish government and how it views the tension in the region, she said that “we continue to support the UN-led mediation on Cyprus, and we discourage any rhetoric or action that could negatively affect a peaceful settlement”.

She went on to say that “there has recently been a request for the UN to engage in some sort of mediation on a revenue-sharing agreement for natural gas developed off Cyprus, and we understand that the UN is considering that request, and we would consider that it would be quite constructive if the two communities could begin to work on deescalating tensions in a way similar to that”.

Replying to another question, Nuland said that “we want to see a peaceful settlement of this issue under UN mediation. We want to see the island’s resources shared between the communities. We are interested in this proposal for UN mediation of revenue-sharing. Overall, though, we would like to see a de-escalation of rhetoric and tension so that the UN process can move forward in a good environment”.

Invited to comment on EU Enlargement Commissioner’s suggestion that the issue is brought before the International Court of Justice, she said that “we would support some sort of mediation but we need a resolution of these long-standing Cyprus issues under the UN auspices”.

Asked whether there is any difference between UN, EU and US approach on the matter, Nuland said that “if there is a dispute reconciliation resolution mechanism that could be agreed on by all concerned parties, that would ensure that the communities were able to share the resources. That would be something that we would be supportive of. But again, we’re pleased to see that people are talking about resolving this dispute peacefully, deescalating the rhetoric, and more generally, putting our energy into supporting the UN process for Cyprus reconciliation”.

Later on Wednesday night, Cyprus’ Ambassador in Washington Pavlos Anastasiades sought clarifications from the Department of State on Nuland’s statements.

Diplomatic sources told CNA that the US has reassured that Nuland’s statements do not reflect Washington’s stance on the issue and that there would be a correction.

The US also said that the American government supports Cyprus’ sovereign right to explore and exploit for natural resources in its EEZ, expressing also concern on the presence of Turkish warships in the region.

CNA contacted a senior official in the US Department of State, requesting further clarification on the statements Nuland made.

“Our policy has not changed”, he told CNA, and referring to two recent Department of State briefings on September 9 and September 19.

On September 9, in the daily press briefing, Spokesperson Victoria Nuland had said:
“ We’ re obviously aware of the Turkish Government position on this issue. With regard to the U.S. Government position on this issue, we strongly support efforts by both Cypriot parties to reunify the island into a bi-zonal, bi-communal federation. We believe that securing energy supplies through better energy diversity is of value to all of the people of Cyprus and of value to the region. We have a U.S. company involved, Noble Energy. And we believe this a positive thing, and that energy diversity in Europe, including increased energy supply from Cyprus, would be a positive”.

On September 19, a Senior Administration Official, following Secretary of State Hilaray Clinton’s meeting with Turkish Foreign Minister Davutoglu, said: “They talked about Cyprus and the Secretary reiterated our commitment to the Cyprus settlement, to the current UN talks – direct talks that are underway under UN auspices. There are issues as you know regarding energy development, gas exploration. The United States supports Cyprus’s right to explore for energy, it doesn’t believe that should undermine or interfere with the talks and agrees with all of those who believe that the best way to sort out the question of energy and economic development is through a comprehensive settlement of the Cyprus problem”.

Turkey, whose troops occupy Cyprus’ northern part since they invaded in 1974, is the only country in the world, which does not recognise the Republic of Cyprus. Following a decision by Nicosia to begin natural gas and oil exploration in its EEZ, Ankara has deployed warships in the Eastern Mediterranean and signed an “agreement” with the illegal Turkish Cypriot regime in occupied Cyprus, delineating what they call continental shelf.

Drilling has already begun and is being carried out by Houston-based “Noble Energy”, off Cyprus’ south-eastern coast.

The government of Cyprus has protested to the UN and the EU Turkey’s moves, saying it has a sovereign right to exploit its natural resources, pointing out that Greek Cypriots and Turkish Cypriots will benefit from any profit that may come from oil drilling.

Cyprus has signed an agreement to delineate the Exclusive Economic Zone with Egypt and Israel with a view to exploit any possible natural gas and oil reserves in its EEZ. A similar agreement has been signed with Lebanon but the Lebanese Parliament has not yet ratified it.

UN-led talks between the leaders of the two communities in Cyprus are currently underway in order to reach a negotiated settlement that would reunify the island.