Upheaval for Greek Natural Gas Privatization Process
The ongoing privatization of Greece's DEPA and DESFA received another setback, with resignation on the agency responsible for the privatization of the main players in the Greek natural gas sector.
Takis Athanasopoulos, CEO of TAIPED, was forced to resign after a state prosecutor’s investigation alleged malpractice when he was a CEO of the Greek public power corporation in 2006.
TAIPED quickly selected another technocrat to fill the vacuum, but questions remain whether this latest development will hinder the process that has reached a crucial point, just four weeks before binding offers for the privatization of the main players in the Greek natural gas sector are to be submitted.
Just 24 hours prior to the resignation, Athanasopoulos has briefed respresentatives from the IMF-ECB-EU troika, assuring them of smooth sailing towards the conclusion of the privatization schedule.
Leading media in Greece poined out that the judicial inquiry for a past alleged corruption case that was deemed closed for years came at a suspicious moment. Thus, there is wild speculation that specific domestic and energy related business interests are trying to stop the privatization of the gas sector, fearing a loss of their dominant corporate player.
Lenders expressed concerns about serious delays in the process even before the resignation and have called for direct intervention by placing Troika board members into TAIPED, should the local government does not act to speed up the process.
In another interesting twist, the Greek Minister for Press and Media, Simos Kedikoglou, headed a delegation to Moscow where talks were held with energy stakeholders and most importantly, the highest bidders for the privatizationof DEPA and DEFSA.
Media reports indicate that the Russia may make application against Greece in the European Court of Justice, should "political interference" impair the bidding process.
Russian Minister of Foreign Affairs Sergey Lavrov accepted to visit Greece in early April and meet with his counterpart, just a week before the submission of the binding bids, whilst the Greek Premier Antonis Samaras will have just returned from a late March visit to Washington to meet the American President.
Political visits of such level clearly indicate behind the scenes negotiations in a triangle between US-Greece-Russia, while the EU, through Germany, is actively pursuing an end to the privatizations by pressuring Athens via its officials already based in the country as Troika members and technical advisory teams.
Today also marks the commencement of a visit to Greece by Gazprom delegation lead by CEO Alexei Miller.
The visit was prepared in advance by the general director of research of Gazprom Andrei Krylov and meetings will take place with Greek ministers and business leaders.
A broad range of issues are on the agenda, apart from the DEPA and DEFSA privatization. These include the prospects of offshore natural gas reserves in Greece, negotiation regarding the renewal of a long-term gas contract with Gazprom which ends in 2016, and regional developments such as the Southern Corridor, the progress of South Stream, and newly discovered gas in the eastern Mediterranean, in which Gazprom has recently taken a stake both in Israeli and in Cypriot locations.
Although it is difficult at this stage to conclude a further delay for the Greek privatization, it is certain that the interest of the Russian companies is growing. This may even have a positive effect regarding Greece’s ability to raise the price tag for both companies, and most importantly, for the establishment of a more advanced future plan that could accommodate a larger for the country and the region in terms of natural gas hub prospects.
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