EU and US oppose Russia’s DEPA deal

The privatisation of Greece’s Public Gas Corporation (DEPA) and of gas network operator DESFA has been complicated by reservations from Washington and Brussels regarding Russia’s interest in one of the Mediterranean country’s most lucrative companies – economically and geopolitically.

On 9 January, Hellenic Republic Asset Development Fund (TAIPED), the new public agency tasked with enacting the Greek government’s privatisation plans, is expected to hold a board meeting to discuss some of the 35 projects that are up for privatisation. Talks may include the progress on a 100% sale of DEPA and a 65% stake in DESFA.

However, the issue is more political than economic. "For the moment various and credible information streaming from Greek governmental sources indicate that the bidding for DEPA may even be postponed and dealt with after other major privatisations take place,” Ioannis Michaletos, a security and energy affairs analyst at the Institute for Security and Defence Analysis in Athens, told New Europe.

The United States voiced concern over the DEPA deal, saying that Greece should not become Russia's "energy hostage." The US State Department also underlined that the deal has an obvious political undertone.

The European Commission is also said to be worried about European dependence on Russian gas. In September, the European Commission officially announced it was launching an investigation into alleged anti-competitive market practices by Gazprom.