Turkish Cypriot officials said they will impose tax restrictions on humanitarian aid (excluding medical items) to around 400 Greek Cypriots and Maronites living in north effective 1 Oct; justified move saying that untaxed goods obtained in the form of aid were being traded on the market; Greek Cypriot govt 3 Oct said it will protest to UN. Turkish Cypriot “FM” 3 Oct said in Washington that “Monaco-like” autonomous system, dependent on Ankara for defence and foreign affairs, was conceivable option for Turkish Cypriot side, adding that “it is time to seek international recognition”; Turkish Deputy PM Recep Akdağ 9 Oct dismissed remarks as “personal opinion”, said “Ankara and [northern] Cyprus will decide on a political solution together”.

Turkish Cypriot leader Akıncı and Greek Cypriot President Anastasiades both met with UN Secretary-General Guterres in margins of UN General Assembly in New York. Akıncı 19 Sept conceded that he did not expect any movement of Cyprus problem over next five months during Cyprus presidential election period, while Anastasiades 22 Sept said he remains determined to continue talks for settlement. U.S. oil company ExxonMobil 6 Sept confirmed controversial plan to start drilling on south coast of island in second half of 2018.

During annual commemorative events for killing of eighteen Turkish Cypriots in 1964, Greek foreign ministry 8 Aug issued statement criticising Turkish portrayal of three-day bombing campaign that killed over 50 Greek Cypriots including nineteen civilians; Turkish foreign ministry responded with statement asserting Greeks and Greek Cypriots attempting to cover their guilt after having “for many years … resorted to every possible means of propagating fear and instigating violence with the aim of expelling” Turkish Cypriots from Cyprus “through ethnic cleansing”. UN 14 Aug announced Espen Barthe Eide resigned from position of Special Envoy for Cyprus. Greek Cypriot govt 27 Aug said it will continue oil and gas exploration activities despite Ankara’s “provocative tactics”.

UN Secretary-General Guterres 7 July announced that reunification talks had collapsed, following intense round of talks between Greek Cypriot and Turkish Cypriot leaders joined by guarantor powers in Switzerland 28 June-7 July. Sides blamed each other for collapse, with main disagreements over issue of security guarantees. President Erdoğan 10 July blamed failure of talks on “negative attitude” of Greek Cypriot side. Greek Cypriot govt spokesperson 7 July blamed collapse on Turkey’s refusal to relinquish intervention rights and presence of troops on island. Turkish FM Çavuşoğlu 18 July announced Ankara would work with Turkish Cypriot leadership to get support for recognition of “Turkish Republic of Northern Cyprus” (TRNC) as separate state, called for lifting of embargoes and restrictions on “TRNC”. Spat over drilling for potential offshore hydrocarbon sources immediately resumed after collapse of talks; tensions increased with reports 12 July of exploration activities by two companies off Greek side of island, and Turkish naval forces patrolling. Ankara 10-11 July said unilateral drilling and exploration unacceptable, resources belong to both sides of island.

Greek Cypriot President Anastasiades and Turkish Cypriot leader Akıncı met with UN Secretary-General Guterres 4 June, agreed to resume bilateral negotiations and reconvene international conference. UN Special Envoy Eide 16 June announced leaders’ summit to be held in Crans Montana, Switzerland 28 June. UK 17 June reiterated offer made in 2004 UN-brokered Annan plan to cede territory from its military bases in Cyprus to facilitate talks on territorial adjustments. Negotiations began in Crans Montana 28 June; Guterres joined talks 30 June, reported some progress but said “sensitive and difficult issues remain to be resolved”. Ankara 9 June said it would conduct live ammunition military exercises south west of Paphos 14-17 June and start drilling in the Mediterranean for hydrocarbons by end of year.

UN Special Envoy Espen Barth Eide 26 May announced he was halting UN mediation efforts amid impasse on convening new Geneva conference, citing lack of prospect for common ground, but insisted reunification talks have not collapsed; 31 May said there is “dead end” in process, more diplomatic work needed, currently no new meetings expected between the two sides. Greek Cypriot President Anastasiades and Turkish Cypriot leader Akıncı 17 May failed to reach agreement on procedure at last of four meetings which began in April to restart UN-backed negotiations, amid tensions over oil and gas exploration off Cyprus coast. Greek Cypriot govt 8 May said Turkish “threats” to prevent hydrocarbon extraction in Cyprus’s exclusive economic zone scheduled for summer could be designed to scuttle negotiations, 11 May said it would not alter its plans. Eide 11 May warned resulting tensions could lead to “international crisis” and collapse of talks, but said “nervousness of last mile” was expected. Greek Cypriot President Anastasiades 7 May alleged Sept 2017 elections in Norway prompted haste and bias in Eide’s mediation.

Greek Cypriot President Anastasiades and Turkish Cypriot leader Akıncı 2 April discussed resuming talks after two-month hiatus; 11 April resumed negotiations and agreed to enter new phase of talks with four meetings starting 20 April. UN Special Envoy Eide 10 April reiterated UN mandate was only to facilitate Cypriot-owned process; in 13 April interview said UN had helped develop compromise proposal on security guarantees after consultations with Cypriot leaders, EU and guarantor powers Greece, Turkey and UK. Greek Cypriot parliament 7 April reversed most controversial provision of Feb “Enosis law” that made annual celebration in schools of 1950 referendum which approved union with Greece compulsory; Anastasiades denied Turkish Cypriot protest triggered decision. Akıncı 11 April warned extraction of hydrocarbons in Cyprus’s exclusive economic zone (EEZ) scheduled for summer by Greek-Cypriot side could derail talks if Cyprus settlement not reached beforehand; Anastasiades said he would not negotiate “sovereignty of the Republic”. Ankara 19 April said it would conduct “seismic surveys” in Cyprus’s EEZ from 30 April-30 June in continued row over gas fields.

Amid impasse in negotiations, UN Special Envoy Eide 15 March met Greek Cypriot President Anastasiades and Turkish Cypriot leader Akıncı to try and restart talks; sides agreed to joint dinner 2 April. Anastasiades 7 March blamed Turkey for recent lack of progress in talks, referring to Turkish military presence on island and Turkey’s 16 April constitutional referendum; reiterated demand for withdrawal of Turkish troops from island while acknowledging that “complete and immediate withdrawal of the Turkish troops is not possible”. Greek Cypriot and Israeli armed forces 20-22 March conducted military drill in Cyprus; Greek Cypriot govt reportedly filed complaint with UN after Turkey 19 March conducted military drill in Cyprus’s exclusive economic zone, days after Greek Cypriot govt designated new area for gas exploration.

Greek Cypriot parliament 10 Feb approved proposal by far-right National Popular Front Party (ELAM) for yearly celebration in schools of 1950 referendum which approved Union with Greece (“Enosis Day”). Greek Cypriot President Anastasiades 13 Feb said parliament’s approval of ELAM proposal, which he called “unfortunate”, did not constitute change of policy, should not undermine sincere Greek Cypriot intentions of reunification. Turkish Cypriot leader Akıncı 15 Feb demanded Enosis law be repealed. Russian ambassador to Cyprus early Feb attended seminar in Nicosia convened by hard-line Greek Cypriot politicians opposing deal, prompting concerns over Russian involvement in talks and criticism from Anastasiades. Meeting scheduled for early March cancelled, not clear when/if new round of talks will resume.

UN-backed Conference on Cyprus took place in Geneva 9-12 Jan, with participation of Greek-Cypriot President Anastasiades and Turkish-Cypriot leader Akıncı, FMs of guarantor powers Greece, Turkey and UK, plus EU as observer. Participants discussed issues of security and guarantees, and exchanged territorial adjustment maps for first time. Territorial maps showed considerable points of agreement, with Greek Cypriots’ version showing Turkish entity comprising 28.2% compared with 29.2% on Turkish Cypriots’ version; disagreement also centred on specific sites including town of Morphou. On internal security in transitional period, Anastasiades suggested formation of international police force in which Turkish Cypriots could participate; Ankara said it could not accept EU as force provider. Turkish President Erdoğan 13 Jan said Turkey should maintain troops on island; Athens insisted on complete withdrawal. Deputies-level working group met 18-20 Jan to identify questions on security and security guarantees and instruments needed to address them; UN said talks a success but gave no details. Anastasiades and Akıncı met again in Cyprus 26 Jan and agreed to resume talks on all six chapters 1 Feb. UNSC 26 Jan extended UN peacekeeping mission in Cyprus for six months. European Bank for Reconstruction and Development 24 Jan said ready to invest in N Cyprus if deal can be reached.