Strategic ties, maritime security, IMEC, crude oil — what to expect during Greek PM’s visit

Strategic ties, maritime security, IMEC, crude oil — what to expect during Greek PM’s visit

New Delhi: India and Greece are expected to build on their commitment to elevate ties to a strategic partnership during Greek Prime Minister Kyriakos Mitsotakis’s upcoming visit to the country. Maritime security, the Red Sea crisis in particular, besides defence cooperation and the proposed India-Middle East-Europe Economic Corridor (IMEC) are expected to dominate discussions.

Mitsotakis will be on a two-day state visit to India from 21-22 February.

He will be accompanied by senior officials and a high-level business delegation of which Greek Foreign Affairs Minister Giorgos Gerapetritis will be a part, among others. The Greek PM will also participate as chief guest at Delhi-based think tank Observer Research Foundation’s (ORF’s) annual Raisina Dialogue conference.

Mitsotakis’ visit comes after Prime Minister Narendra Modi’s visit to the European country in August 2023. During the trip, the two leaders decided to upgrade bilateral ties to the level of a “strategic partnership” and expand bilateral cooperation in political, security and economic spheres.

“The strategic relationship has been put into motion and both sides are initiating step-by-step procedure. Maritime security will be an important dimension, as well as collaboration on major regional projects like IMEC,” Yannis Alexis Zepos, former secretary general of the Greek Ministry of Foreign Affairs and former Ambassador to India, told ThePrint.

“Greece, blessed with several ports and good linkages with the rest of Europe, is a natural partner for this,” he added.

Greece, strategically located and home to the second largest Mediterranean port known as the Port of Piraeus, has been viewed as a key partner to the IMEC.

Last week, PM Modi, during a visit to the UAE, signed a framework agreement for the IMEC.

The mega infrastructure project seeks to connect India to the Gulf and the Gulf to Europe, but technical issues continue to loom especially on funding of the project and how it will progress amid the Israel-Hamas war.

Defence cooperation and maritime security are expected to be key areas of discussion between the two delegations.

The naval and air forces of both countries have conducted a number of joint exercises in the past. Last September, INS Sumedha conducted a joint exercise with navies of Egypt, Italy, Greece, Cyprus and Qatar.

#BrightStar23#INSSumedha exercised with Navies of Egypt, Italy, Greece, Cyprus & Qatar, #MediterraneanSea 03-15 Sep 23

Enhancing interoperability, the Ex allowed exchange of best practices & collaborative trg for ensuring #maritimesecurity

🇮🇳-🇪🇬-🇮🇹-🇨🇾-🇶🇦-🇬🇷 #BridgesofFriendship pic.twitter.com/7kpS7HkdyJ

— SpokespersonNavy (@indiannavy) September 15, 2023

Last April, the Greek and Indian air forces undertook a joint training exercise with Su-30, F-16, and Rafale fighter jets, for ten days over Greece and the Mediterranean Sea.

India has also used similar messaging on its vision for the Indo-Pacific with regard to the Mediterranean Sea.

“As leaders of two ancient seafaring nations with a long-standing maritime outlook, they shared their vision of a free, open and rules-based Mediterranean Sea and Indo-Pacific,” stated the joint statement issued by the two sides last August during PM Modi’s visit to Athens.

Developing shipbuilding sectors is also a key point of collaboration between India and Greece.

Last November, Vassilis Korkidis, head of Piraeus Chamber of Commerce and Industry, was quoted by local Greek media as saying that this is an area where Greece and India are closely cooperating and seeking investments especially at a time when capacity of shipyards in Asia is restricted due to the rising number of orders for new ships.

Curious case of crude oil trade

Bilateral goods trade between India and Greece stood at approximately $1.94 billion in FY 2022-2023. Main items among Greek exports to India include agri products and fruits, rubber and plastic products, cotton, copper, iron and steel products and more. India, meanwhile, traditionally exports machinery, automobiles, auto parts, iron and steel and textiles to Greece.

However, in the last couple of years there has been an uptick in Greece’s exports of petroleum crude oil to India.

Data from the Indian commerce ministry shows that Greece’s total exports to India jumped to $1.15 billion in FY 2022-23 from $299 million in FY 2021-22.

Greece exported 1.1 million tonnes of crude worth $601 million to India in FY 2022-2023, compared to zero in preceding years. Also, exports of Grade HV fuel oil to India stood at $300 million or 650,000 tonnes that same year.

Further, data shows that India’s imports of crude from Greece hit $540 million or 1.2 million tonnes in the period from April to December 2023 — already surpassing the total number of crude exports to India in the previous financial year.

Though 1.2 million tonnes may be a drop in the sea of billions of crude shipped to India from across the world, experts were curious about why Greece, known for its refining capabilities, is exporting crude.

“Lately, there have been a number of reports that Russian crude oil is being shipped through Greek ports to circumvent sanctions. Our trade data could be reflecting this trend,” an expert at the Jawaharlal Nehru University (JNU), who did not wish to be named, told ThePrint.

Asked what could be the reason for India importing large amounts of crude from Greece, Ambassador Zepos said: “My guess is that that is a result of major changes in Europe’s oil supply chains brought on by the Russia-Ukraine war.”

Since the Russia-Ukraine war began in February 2022, Greek shipping firms such as Minerva Marine, Thenamaris and TMS Tankers have actively transported Russian oil to various parts of the world.

However, last November, Reuters reported that Greek shipping firms have stopped transporting Russian oil in order to avoid US sanctions that are now being imposed on some firms carrying such cargo.

ThePrint reached the Embassy of Greece in India via email for clarity on the uptick in crude exports to India but had not received a response by the time of publication. This report will be updated if and when a response is received.

(Edited by Amrtansh Arora)