Cyprus, the EU member state closest to the Middle East, has been warned it could be dragged into the conflict between Israel and Hezbollah, the Lebanese militant group.

The island nation has been advised by Hezbollah not to provide assistance to the Israeli military with group’s chief Sayyed Hassan Nasrallah claiming Cyprus could be a target if it allowed Israel to use its military facilities in the event of an attack on Lebanon.

The Hezbollah leader's threats focused on Cyprus' decision to allow the Israeli military to conduct exercises in its airspace and joint military drills. Cyprus is 264 kilometres from the Lebanese coast, and since 1974 has been divided into a Turkish-occupied north and UN-recognised Cypriot south.

Nasrallah said: "The Cypriot government must be warned that opening Cypriot airports and bases for the Israeli enemy to target Lebanon means that the Cypriot government has become part of the war and the resistance [Hezbollah] will deal with it as part of the war."

Mark Dutton, director W Denis, said: “All businesses should routinely review their insurance arrangements. Conventional Property Damage & Business Interruption policies commonly exclude claims arising out of Political Violence, e.g. Terrorism and War risks. W Denis arranges separate PV insurance which can cover a range of perils either limited to Terrorism and Sabotage, or more comprehensive protection that additionally insure Insurrection, Revolution, Rebellion, War and Civil War, even Mutiny and/or Coup D’Etat.

“In addition, there is an increasing number of Property Underwriters who also exclude Strikes, Riots and Civil Commotion from their Fire Policies. For years some insurers gave SRCC as secondary perils for no extra charge, but with the increase in political instability around the world, SRCC is seen as a key exposure that needs to be specifically underwritten.

“Organisations based within territories that are directly affected by war and terrorism are not the only ones to be considering this wider form of insurance. Due to global supply chains crossing the world, this is something that should be considered by other businesses that import or export their goods or make investments into regions that could also be affected. Contingent business interruption exposures should also consider Political Violence exposures/perils and appropriate action taken to procure suitable protection”

Cyprus offered sanctuary to tens of thousands of Lebanese fleeing civil war in the 1970s and 80s and has lobbied its EU partners to offer Lebanon financial assistance. It recently set up a maritime corridor to dispatch humanitarian aid to Gaza.

Konstantinos Letymbiotis, a Cyprus government spokesperson, said: “ Cyprus is a credible enabler of stability, and an acknowledged regional hub for humanitarian operations, based on excellent relations with all the countries in the region."

Cypriot leaders have attempted to downplay the threats and encourage stability in the region, as did the Lebanese government. Cypriot President Nikos Christodoulides responded stating: "The Republic of Cyprus is in no way involved in war conflict.”

Israel’s invasion of Gaza, following attacks on its citizens, is now in its ninth month with at least 37,000 Palestinians killed by Israeli forces, according to Gazan health authorities.

For more information, or a quotation, please contact W Denis Europe:

Eastern Europe

Vida.Jarasiunaite@wdenis.eu

Southern Europe

Christos.Hadjisotiris@wdenis.com

Western Europe &/or elsewhere worldwide

Mark.Dutton@wdenis.com