Cyprus Grapples with Growing Israeli Influence: Fears of Dominance Emerge

In Nicosia and Limassol, Cyprus, concerns are mounting over the expanding influence of Israel, with some residents fearing a push for dominance across various sectors. Christos Achniotis, who was 16 when Turkish troops landed in Cyprus in 1974, notes a shift from the historical Russian community's focus on property investment to what he perceives as increasing Israeli pressure. "Trying to dominate as much as possible, land-wise, company-wise", as well as politically and militarily, is how Achniotis describes the situation.

Israel's involvement now extends to critical Cypriot systems. Mekorot, Israel's state water company, is involved in supplying water, while Israel Aerospace Industries (IAI) provides new air defence systems. Israeli firms also manage a growing hospital network and hold stakes in the country's largest gasfield. While the Cypriot government frames these ties as a security alliance against Turkiye, many Cypriots interviewed by Al Jazeera express apprehension about ceding control of vital infrastructure to another state, given Israel's significantly larger economy and military might.

Cyprus, strategically located in the Mediterranean, is seen as an attractive prospect for Israel. With dams at only 21 percent capacity in March, desalination plants are crucial for the island's water supply. Mekorot has joint ventures with Cypriot firm Netcom, operating two of the island's five permanent desalination plants. The company has also expanded its cooperation with the Nicosia District Water Board to manage water and sewerage in the capital.

For Danae Laou, who works in hospitality in Limassol, these water deals are concerning. She draws parallels to the situation in Palestine, where Mekorot is listed by the UN for its involvement with illegal Israeli settlements. Najla Abdellatif Vallander, an environmental advocate, describes Mekorot's operations in the West Bank as akin to "water theft," where Palestinian water sources are diverted to Israeli settlements, leading to a situation she terms "water apartheid."

Economically, Israel's footprint in Cyprus has grown substantially. Israeli investors held 5.1 billion euros ($5.7bn) in Cyprus at the end of 2024, a sixfold increase since 2017. The Tel Aviv Stock Exchange is also reportedly considering a bid for the Cyprus Stock Exchange, which could grant Israel greater access to the Eurozone market.

The health sector is also seeing increased Israeli presence with the opening of Hadassah Medical Centre Limassol, the Israeli hospital group's first European center. In the energy sector, Israel's NewMed Energy owns 30 percent of the Aphrodite gasfield, a field that is also claimed by Israel to extend into its waters.

Militarily, Israel has increased its engagement with Cyprus. Israeli special forces have trained in the Troodos mountains, and joint military exercises have been conducted, simulating conflicts with groups like Hezbollah. Cyprus is also replacing its Russian-made air defences with the Barak MX system from Israel Aerospace Industries. The two nations have signed a 2026 cooperation plan covering joint exercises and military dialogue. A pro-Israel advocacy group, the Israel Allies Foundation (IAF), has also launched a caucus of Cypriot lawmakers, framing Turkiye as a "common adversary." This move has been met with criticism from opposition parties like AKEL, who deem it "extremely provocative" and question Cyprus's credibility in demanding pressure on Turkiye while aligning with Israel.

Ioanna Lamprou, a writer in Limassol, notes that while some Cypriots may become more sympathetic to Israel due to shared grievances regarding occupation, they may not fully grasp the parallels with the situation in the West Bank. Ceylan Hassan, a Turkish Cypriot researcher, compares Israel's approach to colonial tactics, suggesting a pattern of "create a problem and then be the solution to it."

Historical context also plays a role, with references to Theodore Herzl's early 20th-century proposal for Jewish settlement in Cyprus. Achniotis reflects on this history, particularly in light of the conflict in Gaza, expressing a sense of insecurity and questioning international respect for smaller nations.