I doubt that's the case. Safari, Acropolis and Sardegna are quite rough too. Cyprus is small market and I think rallying is not as popular there as in Estonia and Latvia.
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WRC Promoter and Cyprus Rally was planed to Organize ERC in 2024 and WRC 2025&2026 but the local Ministry of Finance decline to finance the events.
Do you have a source for this? I'd like to read more
This is from 2022 but it does refer to the situation: https://cyprus-mail.com/2022/07/21/l...-and-criminal/
Regarding the dispute: https://cyprus-mail.com/2022/10/09/f...-cyprus-rally/
and last but not least from last year: https://cyprus-mail.com/2023/09/19/c...ar-of-absence/
Same story but a year later…
But now with Saudi Arabia is difficult to add another one middle-east race.
Let me guess, the ex-minister of the CAA is of a right-leaning party, whilst the ruling party setting up the Federation is leaning left?