The European Union will put on hold high-level talks with Ankara and negotiations on an air transport agreement, as well as freeze funding for Turkey next year, over drilling for gas and oil off Cyprus, according to a draft statement seen by Reuters.
The joint EU decision, which may still be changed, will be discussed among national envoys in Brussels on Thursday with the aim of adopting it when the bloc's foreign ministers meet on Monday.
"In light of Turkey's continued and new illegal drilling activities, the (EU) decides to suspend negotiations on the Comprehensive Air Transport Agreement and agrees not to hold further meetings of the high-level dialogues for the time being," the draft said.
"The Council endorses the (European) Commission's proposal to reduce the pre-accession assistance to Turkey for 2020 and invites the European Investment Bank to review its lending activities in Turkey, notably with regard to sovereign-backed lending," it said.
It added that the EU would be ready to introduce more restrictive measures against Turkey should it continue with the drilling.
Turkey has made continuous efforts to protect its sovereign rights and the rights of the Turkish Cypriots in the Eastern Mediterranean region, where it has been drilling in its exclusive economic zone (EEZ), which is registered with the United Nations in 2004.
Turkey has consistently contested the Greek Cypriot administration's unilateral drilling in the Eastern Mediterranean, saying Turkish Cypriots also have rights to the resources in the area.
The Turkish-flagged drillship Fatih launched its offshore drilling operations on May 3 in an area located 75 kilometers off the western coast of the Cyprus island. The area falls entirely within the Turkish continental shelf registered with the U.N. and in permit licenses that the Turkish government in previous years granted to Turkish Petroleum, the country's national oil company.
Yavuz, Turkey's second drilling ship, has arrived off eastern Cyprus and will soon also begin drilling operations.
Cyprus has been divided since 1974 when Turkey used its guarantor rights to intervene on the island after a far-right Greek Cypriot military coup sponsored by the military junta then in power in Athens sought to unite the island with Greece. The coup followed decadelong inter-ethnic violence and terrorism targeting Turkish Cypriots, who were forced to live in enclaves when Greek Cypriots unilaterally changed the constitution in 1963 and stripped the island's Turks of their political rights.
The TRNC, established in 1983 on the northern one-third of the island, is only recognized by Turkey and faces a longstanding embargo in commerce, transportation and culture. Meanwhile, the Greek Cypriot Administration enjoys recognition by the international community as the Republic of Cyprus, established in 1960, which is a member of the EU.