India’s defence pact with Cyprus is more about expanding a strategic perch in Middle East’s volatile backyard – Firstpost

India’s latest defence pact with Cyprus is making news. India will strengthen its defence ties with Cyprus through collaboration between the two countries’ respective defence industries, Prime minister Narendra Modi said on Monday during a state visit to the island nation. Modi’s two-day visit to Cyprus, ahead of his trip to Canada for the G7 summit, is the first by an Indian prime minister in over two decades— and it signals something bigger than a European foothold.

India’s defence partnership with Cyprus is less about cozying up to Europe and more about expanding a strategic perch in the Middle East’s volatile backyard. Cyprus—a tiny Mediterranean island at the crossroads of Europe, Asia and the Middle East—has been deeply influenced by Russian interests over the past 30 years, becoming a hub for Russian oligarchs and the country’s financial sector to launder money and avoid Western sanctions.

This island which was once a bustling vacation spot is now in the middle of an international game of hide and seek. By deepening ties—think joint naval drills, counterterrorism pacts, and real-time intelligence-sharing—India is positioning itself to monitor and shape the region’s geopolitics. This small island, often overlooked, is a linchpin between Europe, the Middle East and India in various sectors like energy, trade, digital connectivity, given the island nation’s geographical location as the nearest European Union country to the Middle East and India.

Cyprus is no mere speck. It is a hotspot for geopolitics, sandwiched between the Middle East’s never-ending turmoil, Russia’s shady influence, and Turkey’s aspirations. Because of its advantageous location, the island is a gateway to Europe, Asia, and the Middle East—it is 65 miles from Turkey and 100 miles from Syria. Cyprus becomes an essential hub when you combine it with the India-Middle East-Europe Economic Corridor, a trade and energy route that Modi is heavily betting on. The goal for India, a rising power with aspirations to rule the world, is to gain influence in an area where the global order is shaped by terrorism, gas, and oil. Amid their growing relationship, it also subtly criticizes Turkey, an ally of Pakistan.

India’s move to strengthen defence ties with Cyprus, announced during Modi’s visit on June 15, 2025, is a masterstroke disguised as a diplomatic handshake. The joint declaration with Cyprus President Nikos Christodoulides outlined plans for more Indian navy port calls, joint maritime training, and a terrorism intelligence-sharing mechanism. This isn’t just about naval flags waving in Larnaca. It’s about India planting a flag in a region where Russian oligarchs and Middle Eastern financiers thrive in the shadows.

Cyprus has long been a playground for Russia’s elite. Oligarchs use its banks to launder billions, with estimates suggesting Russian-linked deposits once hit $30 billion annually. The island’s lax regulations and EU status make it a magnet for dirty money, much of it tied to Middle Eastern deals—think oil, arms, and real estate. India, with its growing clout and hunger for intelligence, sees Cyprus as a listening post. By sharing counterterrorism data, Delhi could gain insights into illicit networks fuelling conflicts from Syria to Yemen. Imagine Indian intelligence officers sipping coffee in Nicosia, picking up whispers about Iranian proxies or Russian arms deals.

The India-Middle East-Europe Economic Corridor, or IMEC, a grand plan to link India to Europe via the Middle East. Cyprus, as the EU’s easternmost outpost, is a natural hub for transshipment and logistics. Modi called it a “catalyst for peace and prosperity,” but let’s be real: it’s also about securing energy routes and countering China’s Belt and Road. Cyprus’s natural gas fields, contested by Turkey, add another layer. India, eyeing energy security, could invest in these fields, reducing reliance on volatile Gulf supplies. A 2022 defence cooperation agreement already set the stage for joint exercises; now, India’s navy could patrol waters where Turkish drills stir tensions.

The Turkey angle can’t be ignored. Ankara’s support for Pakistan, especially after the April 2025 Pahalgam attack, has India fuming. Cyprus, locked in a decades-long feud with Turkey over the island’s northern third, is a natural ally. When Cyprus condemned Pakistan’s cross-border terrorism and vowed to raise it at the EU, India took note. Modi’s visit, fresh off Operation Sindoor, was a deliberate signal: India backs Cyprus’s sovereignty, a diplomatic middle finger to Turkey. This isn’t just about defence—it’s about reshaping alliances in a region where Turkey’s influence looms large.

But Cyprus’s gray-zone status as a hub for Russian and Middle Eastern money makes it a double-edged sword. India’s intelligence-sharing ambitions could pull it into murky waters, where oligarchs and warlords play. Delhi must tread carefully—aligning with Cyprus risks antagonising Moscow, a key defence partner. Yet, the payoff could be huge: real-time data on terrorist financing, drug trafficking, and arms smuggling, all critical for India’s security as it navigates Middle Eastern chaos.

Beneath its idyllic Mediterranean charm, Cyprus simmers as one of the world’s most volatile geopolitical flashpoints. This tiny island, with its Russian yachts and Middle Eastern cash, is India’s backdoor into a volatile region. By cozying up to Cyprus, India gains a front-row seat to the region’s secrets, from oligarchs’ bank accounts to terrorist networks. India’s defence play here isn’t about chasing European dreams—it’s about staking a claim in the Middle East’s high-stakes chess game. As Modi shakes hands in Nicosia, he’s not just building bridges to Europe—he’s laying tracks to the Middle East. And in this game, small moves make big waves.

The writer is a columnist. His articles have appeared in various publications like The Independent, The Globe and Mail, South China Morning Post, The Straits Times, etc. Views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect Firstpost’s views.