It was at the beginning of the new millennium that Greece realized the special economic and diplomatic weight it had in relation to its neighboring countries in the north. They have only recently gained political and economic independence after the collapse of the Soviet Union and the disappearance of CMEA. On the contrary, Greece was then the only country in the region that belonged to the European Community (EU) and acted as a magnet for the surrounding Balkan countries, who turned to it for investment and know-how, as well as support for their future course as part of a united Europe.

The central axis of the required investment at that time was and still is the investment related to the production and management of energy and related infrastructure. The provision of efficient and cost-competitive energy is a basic condition for economic and social development.

The “Synod of Thessaloniki”, held exactly 20 years ago, consolidated the dominant economic and political position of Greece at that time in Southeastern Europe. However, subsequent events did not live up to the expectations of the time, as Greece, which was at the height of its influence with the 2004 Olympics, failed to capitalize on their brilliance and capitalize on this vast legacy. At that time, focusing on energy, he could penetrate all countries in the region, offering know-how and investment, as well as making huge investments and a diplomatic leap. Instead, the country fell into an incomprehensible introversion with the familiar ending a few years later in financial bankruptcy and memos.

That is why the recent agreement reached by the PPC management (10/3) on the 100% acquisition of Enel Romania at a price of 1.26 billion euros is of great geopolitical significance, since in practice it marks the return of Greece to the region by encouraging strategic investments. With this agreement, PPC is strengthening Greece’s energy presence in the Balkan region, and the “big move” beyond the Greek borders, which has been PPC’s longstanding goal, becomes a reality. At the same time, the listed company is changing class as it becomes a regional player, and the acquisition of Enel Romania brings many benefits to the Greek group. Access to Romania gives the company access to a very important strategic energy corridor that starts in Greece, passes through Bulgaria and ends in Romania. In addition, PPC is doubling its installed renewable capacity overnight, adding 3.2 million new customers to its clientele, and acquiring over 130,000 km of distribution network.

As we have argued in the past in the K columns, PPC was to be present and active in South Eastern Europe for many years, taking advantage of the country’s strong brand vis-à-vis the rest of the region. – its experience in the field of energy, as well as its financial system, which, despite the reduction and huge damage caused by the memorandums, has the trust and highly qualified leaders. We are referring to the presence of Greece not only in Romania through the recent PPC deal, but throughout the rest of the region through companies operating in the broader energy sector.

Since Greece has developed a very broad energy sector over the past 20 or so years, these are usually companies operating in the field of electricity (for example, Mytileneos, TERNA, Elpedison, Motor Oil), renewable energy, oil, natural gas, etc. etc. to develop a strong presence in the wider region of South East Europe. The entry into the region was supposed to take place in the late 1990s – the beginning of the new century, when a new energy market in Southeast Europe was still being formed.

While PPC and other major Greek energy companies had the financial power and strong government support, they were able to acquire most of the energy companies in the countries of the region for a relatively small price. Since the Balkan banking system was dominated by Greek banks and Greece was politically and economically powerful, this was an excellent opportunity for a great energy discovery in the region. That opportunity has come and gone forever, and since then Greece has gone through several adventures to get back on its feet.

However, the energy game for Greece in the region does not appear to be completely lost, as it has managed to maintain a small but distinct presence thanks to the foresight of some investors and companies. Thus, today Greece through HELLENiQ ENERGY, which, like ELPE, in the period 2000-2003. has invested various funds in the region, is present outside of Greece in Bulgaria, Serbia, North Macedonia and Cyprus, where established group companies exist and operate. In addition, thanks to its dual advantage (see Motor oil and HELLENiQ ENERGY), Greece has become the main supplier of crude oil and petroleum products for most countries in the region. In addition, there is a limited presence of PPC in North Macedonia and Albania through its subsidiaries that are trying to develop specific projects. Now, with the acquisition of Enel Romania by PPC, the rules of the game are changing as the country can rightfully claim a place on the region’s energy chessboard according to its capabilities and economic opportunities.

We won’t go into detail on whether the acquisition price was fair, high or low, and whether PPC finally bought or dumped Enel, as some analysts are wondering. It goes without saying that PPC, absent from the region’s energy scene for so many years, will buy at a high premium. This is the price of her long absence from the region. Assets and asset valuations and prices in general cannot be what they were 15 and 20 years ago when Enel and other companies (eg CEZ, OMV) rushed to invest in the area. Today, with the release of PPC in the Eastern Balkans, a new page of development and extroversion opens. We will take advantage of this by wishing success to the management and employees of the Company.

Mr Kostis Nick. Stambolis is President and CEO of the Energy Institute for South East Europe (IENE).