Greece and Russia keen to restore ties

Russian president Vladimir Putin and Greek PM Alexis Tsipras said they want to restore ties between their countries amid signs of a schism among some EU states on whether to maintain sanctions against Russia over the conflict in Ukraine.

“Greece is a sovereign country with unalienable rights,” Tsipras said after meeting with Putin in Moscow yesterday and it disagrees with the logic of sanctions, which he called “an economic war”. He wishes “for a new spring in ties between our countries”.

Putin said Greece could play an enhanced role as an energy hub for Russian gas exports via a new pipeline through Turkey.

EU sanctions over the conflict in Ukraine along with falling oil prices have hurt Russia’s economy, which is sliding into its first recession in six years, while Greece is locked in talks with its euro partners on getting more bailout funds. Putin is looking for an ally to undermine the EU’s position, as a unanimous vote of the 28 member states is needed to renew the sanctions in July.

Tsipras condemned the sanctions as “senseless” last week. Russian foreign minister Sergei Lavrov said earlier yesterday that Russia believed more EU states realised the punitive measures were “counterproductive” and have started to follow their national interests.

The EU imposed sanctions after accusing the government in Moscow of sending troops and weapons to support pro-Russian rebels in eastern Ukraine, an allegation Putin rejects.

Russia was Greece’s biggest trading partner in 2013, with two-way exchange of almost $10 billion, mostly due to imports of Russian natural gas, according to data compiled by Bloomberg.

Russia countered the EU’s penalties by imposing sanctions on $10bn of food imports from the trade bloc in August. Greece is seeking to lift the ban for its agricultural products, though European Commission spokesman Daniel Rosario warned on Tuesday that member states should “speak with one voice to all our trade partners, including Russia”.

Putin told a news conference that Russia understood that Greece had to vote for the EU sanctions and, while it can’t make an exception for one country by lifting its food ban, it’s ready to create joint companies in this field.

Russia hasn’t received any request for financial aid from Greece, Putin said. However, Russian-Greek joint projects could involve the provision of loans, including in the energy sector. Russia is ready to participate in Greek privatisations and Putin said he hoped Russian companies would be treated equally.

Bloomberg