The main options included in the latest draft of the EU’s options paper on Turkish occupied Varosha are targeted measures against individuals and legal entities responsible for the violations regarding the fenced-off area, cuts in the EU pre-accession financial assistance to Turkey and restrictions on the activities of the European Investment Bank and other financial institutions in Turkey, according to reliable information obtained by CNA.

The draft, which will be discussed by the foreign ministers during the Foreign Affairs Council in Brussels on Monday, may serve as a guide for the Council (on the level of foreign ministers or even leaders) on how the EU can respond to Turkey`s actions.

The document stresses that Turkey`s actions in Varosha are illegal and that continued engagement between the EU and Turkey depends on whether Ankara adopts a constructive attitude or whether it reverts to unilateral and provocative actions. In this case, it is stressed, the EU is determined to use the means and tools at its disposal (thus also referring to the possibility of political measures).

The document also contains extensive references to the EU`s calls for a return to negotiations, and refers to the possibility of discussing CBMs already proposed by the sides on the island in relation to natural gas, while also pointing new areas of cooperation in the context of the energy transition. The text also stresses that the EU will continue to support the Turkish Cypriot community in the context of facilitating a federal solution.

The document refers to the European Council`s June conclusions calling for full respect of UNSC resolutions, as well as the UNSC’s 23rd July statement regarding the status of Varosha, which condemned any attempt to further open and settle the area by anyone other than its legitimate inhabitants and called for a reversal of such actions that violate previous resolutions.

Reference is also made to the statement by High Representative Josep Borrell on 27 July 2021 which condemned Turkey`s unilateral actions and the statements by the Turkish President and the Turkish Cypriot leader, and called for the reversal of these actions.

Cyprus has been divided since 1974, when Turkish troops invaded and occupied 37% of its territory. Numerous rounds of talks under the UN aegis to reunite the island under a federal roof failed to yield results.

UN Security Council resolution 550 (1984) considers any attempts to settle any part of Varosha by people other than its inhabitants as inadmissible and calls for the transfer of this area to the administration of the UN. Resolution 789 (1992) also urges that with a view to the implementation of resolution 550 (1984), the area at present under the control of the United Nations Peace-keeping Force in Cyprus be extended to include Varosha.

Turkish Cypriot leader, Ersin Tatar, announced in July 2021 a partial lifting of the military status in Varosha.

On October 8, 2020, the Turkish side opened part of the fenced area of Varosha, following an announcement made in Ankara on October 6. Both the UN Secretary-General and the EU expressed concern, while the UN Security Council called for the reversal of this course of action.