Turkish FM Davutoğlu and Greek FM Venizelos 23 Sept reached breakthrough agreement on visits by representatives of Turkish Cypriot and Greek Cypriot leaders to Athens and Ankara respectively in attempt to find political solution on island. Leaders voiced demand for immediate resumption of intercommunal talks on Cyprus settlement. Israel’s energy envoy Michael Lotem 10 Sept called on Turkey, Cyprus to move together to develop Israel’s share of East Mediterranean’s natural gas riches.

Greek Cypriot president Anastasiades 21 Aug said solution to Cyprus problem “remains government’s priority”, reiterated demand for return of Famagusta. UNSG special envoy Downer 1 Aug said UN engaged with both sides ahead of new UN-mediated negotiations expected Oct.

Turkish Cypriot president Eroğlu 16 July said peace talks anticipated for Oct “last chance for a solution”. Greek Cypriot president Anastasiades said talks could resume only under conditions that could lead to tangible results, including return of Famagusta. Republic of Cyprus National Council 17 July approved Foreign ministry Sec Gen Andreas Mavroyiannis as Greek Cypriots’ new “interlocutor” in any talks. In 28 July Turkish Cypriot general elections 4 parties entered new parliament, opposition Republican Turkish Party (CTP) got highest vote with 38%.

Turkish Cypriot president Eroğlu 10 June said he expected new UN-mediated negotiations with Greek Cypriots to start by Oct. Greek Cypriot-led Rep of Cyprus govt 26 June signed statement of intent with U.S./Israeli partners for €7-8bn LNG plant to develop Cyprus offshore gas. 

Turkish PM Erdoğan 16 May said “there is a real opportunity to reach an agreement on the Cyprus issue”, and that Turkey continues to focus on it. Turkish President Gül and Energy Minister Yıldız 10 May signalled possible cooperation with Cyprus on East Med gas. Republic of Cyprus FM Kasoulides 10 May said new reunification talks cannot start until fall 2013. UNSG special envoy Downer 28 May said UN did not set a date for resumption of talks.

Turkish FM Ahmet Davutoğlu 7 April criticised Greek Cypriots for not re-starting reunification talks, Republic of Cyprus govt spokesman said current conditions not good. UNSG special envoy Alexander Downer 24 April said sides must take into account Greek Cypriot economic difficulties, added leaders likely to meet for talks in May. International bailout for Cyprus approved 12 April, involving €10 billion in loans and up to €13.5 billion contribution by Cyprus, rescuing country from bankruptcy and departure from Eurozone. Turkish energy minister 8 April said can cooperate with Greek Cypriots and Israel in joint energy projects “so long as the political atmosphere allows it”.

UN-led reunification talks between Turkish Cypriots and Greek Cypriots on backburner amid Republic of Cyprus financial crisis. New Greek Cypriot govt’s €10 billion bailout deal with EU and IMF 24 March, including downsizing of financial sector and taxes on bank deposits over €100,000, caused public protests.

Democratic Rally (DISI) leader Nicos Anastasiades won Republic of Cyprus presidential elections with 57.5% of vote in 24 Feb second round; hopes that this may give boost to reunification talks as he supports a looser federation model favoured by many Turkish Cypriots.

No movement on reunification talks ahead of 17 Feb presidential elections in Republic of Cyprus. Angry rhetoric towards Turkey continued; Republic of Cyprus FM Erato Kozakou-Marcoulli 15 Jan accused Turkey of “still [opting] for a hard power stance”, said it was “out of the question” for Cyprus to lift its veto on 6 of Turkey’s EU negotiating chapters, including energy. Greek Cypriot govt 28 Jan said transporting Cypriot gas via pipeline to Turkey not possible until solution reached.

No movement expected in reunification negotiations before Feb 2013 presidential elections in Republic of Cyprus. Main opposition Democratic Rally (DISY)’s president Nikos Anastasiades, warmer towards reunification under a looser federation that Turkish Cypriots also favour, maintains lead in poll with AKEL’s Stavros Malas second and EDEK-backed hardliner Giorgos Lillikas third. 80 UNFICYP peacekeepers 30 Nov confronted Turkish soldiers in buffer zone over construction of fence by Turkish side; Turks later agreed to take it down.