Azernews.Az

By Gunay Camal

Representatives of Italian Snam are expected to arrive in Athens for talks with the Greek government over the privatization of the national gas transmission system operator DESFA, Greek media reported.

Italian company appears to have reached an agreement with SOCAR to purchase 17 percent of DESFA, according to a report in Ta Nea,.

SOCAR won a tender in 2013 on the purchase of a 66-percent stake in DESFA for 400 million euros ($446.3 million) but the acquisition was stalled, when SOCAR faced EU’s anti-trust concerns and was ordered to sell 17 percent of DESFA to a third party, so that its stake drops to 49 percent and satisfy EU competition authorities. Greece passed a law in July which raised DESFA's gas tariffs, further complicating the sale.

SOCAR hopes it can overcome the EU obstacles, as Italy’s Snam SpA may purchase at least required 17 percent of shares.

Sale of DESFA is part of a privatization programme required under Greece's three international bailouts since 2010.

In July 2016, Greek Minister of Environment, Energy and Climate Change Panos Skourletis accused the European Commission of delaying the deal on selling a share in Greece's DESFA to SOCAR.

Skourletis said that a number of conditions, set by the European Commission, greatly slowed the privatization process of the gas operator.

In particular, the company will become a passive shareholder, not entitled to vote in the management of the company, as a result of decreasing SOCAR’s share in DESFA up to 49 percent.
--

Follow us on Twitter @AzerNewsAz