Greece vindicated in submarine case - Awarded over €150 Million

The case dates back to the year 2000, when the Greek government ordered new submarines essential for the country’s defense from a German company. The first submarine (“PAPANIKOLIS”) was built in Germany, while the remaining ones were to be constructed at the Skaramagas Shipyards, which had been acquired by the same German manufacturer. Despite the Greek state having already paid around €2 billion and with five submarines near completion, the German side unilaterally terminated the contracts and initiated international arbitration proceedings.

The matter was brought before the ICC Arbitration Court following a claim filed by the Skaramagas Shipyards under Safa’s management, along with his associated companies. They sought nearly €2 billion from the Hellenic Republic.

In a historic move, the Greek government decided to respond with a counterclaim, seeking an equivalent amount in damages. This counterclaim was filed in 2014 by a team of legal advisors from the Legal Council of the State, led by Dionysios Kolovos, who took charge of the legal handling from that point forward.

The outcome was entirely favorable for Greece. The final ruling by the ICC Arbitration Court, issued very recently, fully upheld Greece’s claims, ordering Safa’s companies to pay more than €150 million in compensation.

It’s worth noting that the submarines were eventually completed thanks to the considerable efforts of the Hellenic Navy personnel, working closely with the Skaramagas Shipyards’ employees—many of whom had gone unpaid for years under Safa’s ownership. Their combined efforts made the delivery and operational deployment of the submarines possible.