BRUSSELS - The European Union will this week unblock 38.1 million euros (47.9 million dollars) in aid promised to the Turkish north of Cyprus two years ago, an EU source said Wednesday.
The money is mainly earmarked for infrastructure, notably in the energy sector, as well as the promotion of economic and social development in the north of the divided island.
Cyprus has been divided since 1974 when Turkish troops seized and occupied its northern third in response to an Athens-engineered coup to unite the island with Greece.
After the entry of Cyprus into the European bloc, the EU committed to introduce measures to end the isolation of the northern part of the island and proposed aid of 259 million euros for the 2004-2006 period.
However for almost two years the 25 EU member states were unable to endorse the proposal due to opposition from the internationally-recognised Republic of Cyprus government, which finally gave the green light in February for a tranche of 139 million euros to be handed over.
After the first payment of 38.1 million euros is handed over on Friday, the rest should follow before the end of the year, the EU source said.
The decision comes weeks after the EU's Finnish presidency proposed lifting the embargo on the Turkish Cypriots.
The Finnish deal reportedly offers partial access for Cypriot ships to Turkish ports while opening the northern port of Famagusta under EU supervision, with Greek Cypriots being allowed to return to the UN-protected resort town of Varosha.
Ankara insists on the lifting of the trade embargo as a condition to reopening its ports and airports to ships and planes from the Republic of Cyprus.
10/25/2006 14:41 GMT