The EU is set to curb contacts and funding for Ankara in retaliation for what it calls Turkey’s “illegal” drilling for gas and oil off Cyprus, Reuters reported, citing a draft statement.

On Thursday, national envoys in Brussels were discussing a joint decision to punish Ankara over what the EU sees as Turkish interference with Cyprus’ exclusive economic zone.

However, as the bloc needs Turkey in matters such as security and migration, an EU diplomat said any future sanctions would be limited.

Turkey’s ruling AK Party spokesman said on Thursday that the sanctions against Ankara would be a huge mistake for the EU. “The EU should act on principles instead of taking the Greek Cypriot side,” he said.