“Azerbaijani side has sent a formal inquiry to the administration of Greek prime minister and is persistent in meeting with the head of government. Azerbaijan intends to discuss the difficulties on DESFA privatization. SOCAR president Rovnag Abdullayev is planned to lead the Azerbaijani delegation. No agreement was reached yet on the meeting because of Alexis Tsipras is on a visit to New York. The visit will end on September 26. Taking into account the non-constructive positions of the high ranking officials, Azerbaijan is persistent in meeting with only the Prime Minister and hopes this meeting will be held. Azerbaijani side is interested in only one question: Does the Greek government want to see SOCAR in its economy as a large investor? SOCAR is interested in DESFA privatization. However, as a result of non-constructive steps by some persons, the conditions have changed. Consequently, DESFA assets reduced. We want high level discussion of these changes”, the source said.

On July 31, 2013, the Hellenic Republic Asset Development Fund approved the transaction on purchase of 66% of DESFA shares by SOCAR for €400 mln. In December, 2013, SOCAR and Greece`s state privatisation fund and Petroleum companies signed Contract on Shareholders and the Share Purchase Agreement (SPA).

SOCAR purchases 31% share of DESFA from Greek government, 35% from Hellenic Petroleum SA. HRADF will control share package of the DESFA prior to the SOCAR takes over control on it. The delay in privatization is due to the fact that the Directorate-General for Competition of the European Commission is considering the issue on privatization of DESFA. Basing on antimonopoly principles, the Greece government offers SOCAR to sell 17% of its share to the third party.

Earlier, Director General of SOCAR Energy Greece Anar Mammadov said that Greek government made amendments to legislation with the initiative of energy minister in July: “This had negative impact on DESFA tariffs. We think DESFA value declined 40-50%. If these conditions remain unchanged, we are not so interested in DESFA on these conditions”.

SOCAR President Rovnag Abdullayev said Azerbaijan is waiting for Greek government’s proposal till September 30: “If the changes to tender procedure are contrary to the law, the DESFA privatization will be meaningless. We requested explanation from the Greek government, but no explanation was made”.

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