The termination does not concern the contract signed in implementation of law 3885/2010 between the Greek state, HSY, HDW and Abu Dhabi Mar, but the subcontract between the contractor (HSY) and the main subcontractor (HDW), namely the “Neptune II” contract for the Midlife Modernization and Repair for one Class 209 submarine (Oceanus) plus the construction of two new Class 214 submarines for the Hellenic Navy (the “Neptune I” contract in power before the ratification of law 3885/2010 provided for Midlife Modernization and Repair for three Class 209 submarines).

This development is not related to acts or omissions by the Greek government but rather to serious disagreements that have arisen between HSY’s present ownership (Privinvest Shipbuilding/Abu Dhabi Mar) and ThyssenKrupp Marine Systems/HDW, not only about issues concerning HSY and the Hellenic Navy submarines, but also about the wider cooperation between those two parties in Germany.

According to Defence Minister Evangelos Venizelos, Greece’s interests are fully secured with law 3885/2010, and this development does not affect the delivery -based on the agreed timetable- of the three completed Class 214 submarines in the HSY site, whose ownership has already been transferred to the Greek government, thanks to the provisions of law 3885/2010.

Equally secured are the amounts of money that the Greek government has paid following law’s 3885/2010 entry into force concerning the completion of the “Archimedes” contract and the support material of the Class 209 submarines that the Greek fleet has. The small sums of money that were paid for the “Neptune” contract still remain nonetheless in the hands of HSY.

HSY/Privinvest Shipbuilding/Abu Dhabi Mar have already requested to inform the Greek government on those developments and for that matter Mr. Iskandar Safa will visit the Minister of Defence at noon on Wednesday. He has already, however, confirmed to the MoD in writing and on the phone about the Group’s wish to remain in HSY and to Greece in general.

It is reminded that last week the Minister of Defence informed the relevant parliamentary committee on the Hellenic Navy’s documents and the letters that he himself had addressed to ThyssenKrupp/HDW, in relation to the observance of the transparency and audit clauses provisioned by law 3885/2010 –letters which were forwarded to the Ministers of Finance and Defence of the Federal Republic of Germany.

The Minister of Defence had also informed the relevant parliamentary committee about the complaint which the Greek Ambassador to the UAE submitted, on the Minister’s directive, to the International Petroleum Investment Company (which controls the majority of shares in Ferrostaal since 2009) in order for all possible assistance to be provided to the Hellenic Parliament and the Greek judiciary in pursuit of their investigation. A similar contractual obligation for assisting the investigation binds HDW as well, according to law 3885/2010.

On those matters, tomorrow morning the Minister of Defence will brief the Special Standing Committee on Defence Armaments and Contracts of the Parliament.