NISOSIA: Renewed tensions between Cyprus and Turkey over potential gas reserves in the eastern Mediterranean risks becoming a new bone of contention between the two countries, in a region which is already struggling to cope with the wider turmoil in the Middle East.
Cyprus is expected to contest the inclusion of Turkish shipbreaking yards in a list of Brussels-approved facilities The European Commission (EC)’s upcoming recycling regulation could be scuppered by the fallout from the ongoing territorial and political dispute between Turkey and Cyprus.
The Mediterranean island nation is expected to lodge a complaint against Turkish recyclers’ inclusion in a list of approved EC yards based on the current shipping ban, which will not allow its ships access to breaking facilities in Turkey.
The EC is currently drawing up guidelines for the yards it will recognise as being suitable to demolish European-flag ships — a process that will be concluded in the next month.
Turkish shipbreakers are then expected to file their applications following finalisation of the conditions.
The country’s breaking capacity is viewed by Brussels as crucial to the success of the regulation.
However, for a shipbreaker to be accepted on the list, it must comply with the EC principle of “equality”, outlined in paragraph eight of the recycling regulation.
In effect, this means an approved breaker’s yard must be free to access and fair to all member states.
Cyprus will be in a strong position to argue that its registered fleet would be put at a commercial disadvantage should Turkish yards be approved.
Cyprus-registered ships are currently banned from trading to Turkey and, once the regulation kicks in, they would then have to be recycled at an EC-approved yard in another country — most likely China.
So far, two Chinese yards have applied and only facilities in that country are likely to have the capacity and conditions to meet the EC’s final requirements.
But Chinese demolition prices are considerably lower than that of other breaking countries, meaning Cyprus-based sellers would lose out.
Indian breakers are also unlikely to be an option as the EC will not recognise beaching as a safe and environmentally sound method of demolition.
The issue could seriously damage the EC regulation.
The application of two Chinese yards, Zhoushan Changhong International and Jiang Xiagang Changjiang Ship Recycling, is in itself sufficient breaking capacity to bring the regulation into force — so the Turkish capacity is not required.
But observers believe the EC will find it difficult to go ahead without a wider range of alternatives and European yards also being included in the list.
“It’s going to be awkward for the EC to progress with a regulation that solely relies on Chinese shipbreaking capacity, especially because Chinese yards dip in and out of the market,” said a source.
“And, politically, the EC can’t simply go back on its stand against beaching and suddenly accept Indian beaching yards.
“So, either the ban on Turkish shipping is going to have to come to an end or the EC finds a way around this political minefield if it wants to push on with the regulation.”
