Fast oil privatisation would help Greece exit bailout

Significance

The preferred investor is to be selected in record time, by end-June. The sale is on the list of ‘prior actions’ under Greece’s third economic adjustment programme. A successful privatisation would send a positive signal to international investors about greater economic openness and the government’s willingness to embark on unpopular market reforms, thus increasing the likelihood of a ‘clean exit’ from the bailout programme on August 20.

Impacts

• Middle Eastern and Russian investors are unlikely to be shortlisted because of national security considerations.
• Helpe would reap potential benefits from improved access to upstream segments of the market.
• The firm's dominant market position will require national energy security concerns to be addressed both pre- and post-privatisation.
• Increased earnings repatriation by new owners might run contrary to Greek economic interests.