The Greek government has definitively prevailed in the international arbitration concerning the Hellenic Navy’s submarines, winning compensation exceeding 150 million euros. The historic decision by the ICC International Court of Arbitration closed a nearly two-decade legal battle involving construction contracts for the state-of-the-art Type 214 submarines.
The origins of the dispute with Skaramanga Shipyards
In the early 2000s, the Greek government signed contracts with a German company for the construction of four advanced Type 214 submarines. The first submarine, “PAPANIKOLIS”, was built in Germany, while the remaining vessels were to be completed at the Skaramanga Shipyards which had come under the control of the manufacturing company.
Despite the Greek government paying nearly 2 billion euros and the five submarines nearing completion, the German company terminated the contracts in 2010. This move led to international arbitration proceedings with demands for additional compensation.
The complication with Iskandar Safa
The situation deteriorated when Lebanese businessman Iskandar Safa acquired Skaramanga Shipyards. The new management immediately suspended execution of the agreed contracts and imposed new terms extremely detrimental to the Greek state.
Safa’s companies filed a new arbitration claim with demands reaching 2 billion euros. Unlike the past, the Greek government decided to counterattack by filing its own claim for equivalent compensation.
The Hellenic Navy’s submarine strategy
In 2014, a team of experienced legal advisors led by Dionysios Kolovos undertook drafting the Greek government’s ICC submission. With exceptional legal documentation and irrefutable evidence of the opponents’ unfair practices, the Greek team managed to reverse the adverse conditions.
The final decision fully recognizes the responsibilities of Safa’s companies and categorically rejects all their claims. Simultaneously, it awards significant compensation in favor of the Greek government.
Type 214 submarines strengthen the Hellenic Navy
Despite delays and obstacles, the submarines were completed thanks to the dedication of Hellenic Navy personnel and Skaramanga Shipyard workers. The workers continued their work for years without pay, demonstrating exceptional professionalism.
Today, the Type 214 submarines led by “PAPANIKOLIS” are considered the best conventional submarines in NATO.
Their characteristics include:
- Cutting-edge technology with extended submersion capability
- Superiority in the Aegean and Eastern Mediterranean
- Deterrence and national defense enhancement
- Combination of advanced technology with Greek crew experience
The victory in international arbitration definitively closes a dark chapter and confirms the Greek government’s correct stance against unfair practices. The Hellenic Navy’s submarines now remain a strong pillar of national defense.
