Greek investments in the Republic of Macedonia
Encyclopedia
The Republic of Macedonia
generally has good relations with Greece
and enjoys substantial inward investment from Greece
. However, the naming dispute
has inhibited the establishment of full diplomatic relations so far but has not prevented both countries from engaging in military and security co-operation, cross-border investments, and cultural exchanges.
The acquisitions of Stopanska Bank by the National Bank of Greece
, the OKTA
refinery by Hellenic Petroleum
, and the mobile operator Cosmofon
by the Greek Cosmote Group
are some of the largest Greek business undertakings in the Republic of Macedonia so far.
According to an interview by then Finance Minister
and today's prime minister
Nikola Gruevski
Greek investment took off after other Western investors were scared off by the 1999 Kosovo crisis:
Additionally by 1999 Greek exports to the Republic of Macedonia had reached the $1.32-billion mark.
report states that, "In December 2005 the two countries opened an Office for Consular, Economic and Trade Relations in Bitola
and a Consulate in Thessaloniki
respectively. Co-operation has developed in many areas, including transport, health, security, culture and customs. However, there has been no progress on the name issue which remains an open problem. Renewed efforts are needed, with a constructive approach, to find a negotiated and mutually acceptable solution on the name issue with Greece, under the auspices of the UN, within the framework of UN Security Council Resolutions (EEC) No 817/93 and (EEC) No 845/93, thereby contributing to regional co-operation and good neighbourly relations."
. Nonetheless according to newspaper Eleutheros Typos by the start of 2007 about 263 million USD had been invested by Greeks. Of the 20 most sizable investments in the country 17 are financed with Greek capital and over 20,000 (about 6% of the workforce) are employed in Greek-owned enterprises http://www.greekembassy.org/embassy/Content/en/Article.aspx?office=1&folder=19&article=24108. At the time 28% of Greek investments were in banking, 25% in the energy sector, 17% in telecommunications, 15% in industry and 10% in food.
Republic of Macedonia
Macedonia , officially the Republic of Macedonia , is a country located in the central Balkan peninsula in Southeast Europe. It is one of the successor states of the former Yugoslavia, from which it declared independence in 1991...
generally has good relations with Greece
Greece
Greece , officially the Hellenic Republic , and historically Hellas or the Republic of Greece in English, is a country in southeastern Europe....
and enjoys substantial inward investment from Greece
Greece
Greece , officially the Hellenic Republic , and historically Hellas or the Republic of Greece in English, is a country in southeastern Europe....
. However, the naming dispute
Macedonia naming dispute
A diplomatic dispute over the use of the name Macedonia has been an ongoing issue in the bilateral relations between Greece and the Republic of Macedonia since the latter became independent from former Yugoslavia in 1991...
has inhibited the establishment of full diplomatic relations so far but has not prevented both countries from engaging in military and security co-operation, cross-border investments, and cultural exchanges.
Background
Since the end of the Greek embargo, which lasted between February 1994 and September 1995, Greece has become one of the most important business partners of the Republic of Macedonia. Greece is the fourth most important investor in the country (12.1% of total foreign direct investments), behind the Netherlands, Slovenia and Hungary.The acquisitions of Stopanska Bank by the National Bank of Greece
National Bank of Greece
The National Bank of Greece is the oldest and largest commercial banking group in Greece. The group has a particularly strong presence in Southeastern Europe and the Eastern Mediterranean...
, the OKTA
OKTA
OKTA is the only oil refinery in the Republic of Macedonia. It is situated outside the capital city of Skopje. The company started up production in 1982. The managing director is Petros Karalis...
refinery by Hellenic Petroleum
Hellenic Petroleum
Hellenic Petroleum S.A. is the largest oil refining company in Greece and with its roots dating to 1958 with the establishment of the first oil refinery in Greece ....
, and the mobile operator Cosmofon
Cosmofon
Founded in 2003, Cosmofon was the second GSM mobile phone operator in the Republic of Macedonia. The first call through the network of Cosmofon took place on May 16, 2003, and now its network codes are 075 and 076....
by the Greek Cosmote Group
Cosmote
COSMOTE is the largest mobile network operator in Greece, with 7.9 million subscribers. The company is headquartered in Athens and it is a fully owned subsidiary of the Hellenic Telecommunications Organization , the incumbent telecommunications provider in Greece...
are some of the largest Greek business undertakings in the Republic of Macedonia so far.
According to an interview by then Finance Minister
Finance minister
The finance minister is a cabinet position in a government.A minister of finance has many different jobs in a government. He or she helps form the government budget, stimulate the economy, and control finances...
and today's prime minister
Prime Minister of the Republic of Macedonia
The Prime Minister of the Republic of Macedonia is the head of government of the Republic of Macedonia. He or she is the leader of a political coalition in the Macedonian parliament and the leader of the cabinet...
Nikola Gruevski
Nikola Gruevski
Nikola Gruevski has been Prime Minister of the Republic of Macedonia since 27 August 2006. He has led VMRO-DPMNE since May 2003. He was Minister of Finance in the VMRO-DPMNE government led by Ljubčo Georgievski until September 2002.- Personal life :...
Greek investment took off after other Western investors were scared off by the 1999 Kosovo crisis:
In the 1999 Kosovo crisis, Western investors and trading partners escaped. Greek investors, who know this region better, came in and picked up enterprises at bargain basement prices. I hope investors from other countries learned the lesson. Since the current crisis started, we have sold our biggest bakery – Zhito Lux – and our biggest fairgrounds – Skopski Saem – to Greek and Slovenian investors. The new owners of Macedonia's largest bank, Stopanska Banka, (National Bank of Greece) are planning to increase the capital.
Additionally by 1999 Greek exports to the Republic of Macedonia had reached the $1.32-billion mark.
2006 Developments
The November 2006 European CommissionEuropean Commission
The European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union's treaties and the general day-to-day running of the Union....
report states that, "In December 2005 the two countries opened an Office for Consular, Economic and Trade Relations in Bitola
Bitola
Bitola is a city in the southwestern part of the Republic of Macedonia. The city is an administrative, cultural, industrial, commercial, and educational centre. It is located in the southern part of the Pelagonia valley, surrounded by the Baba and Nidže mountains, 14 km north of the...
and a Consulate in Thessaloniki
Thessaloniki
Thessaloniki , historically also known as Thessalonica, Salonika or Salonica, is the second-largest city in Greece and the capital of the region of Central Macedonia as well as the capital of the Decentralized Administration of Macedonia and Thrace...
respectively. Co-operation has developed in many areas, including transport, health, security, culture and customs. However, there has been no progress on the name issue which remains an open problem. Renewed efforts are needed, with a constructive approach, to find a negotiated and mutually acceptable solution on the name issue with Greece, under the auspices of the UN, within the framework of UN Security Council Resolutions (EEC) No 817/93 and (EEC) No 845/93, thereby contributing to regional co-operation and good neighbourly relations."
2007 Developments
The total value of Greek investment in the Republic of Macedonia in the last three years has declined. In the first half of 2007 it reached $6 million, less than the corresponding amounts in previous years. Greek investment had peaked in 2004 at over $30 million a year.. Nonetheless according to newspaper Eleutheros Typos by the start of 2007 about 263 million USD had been invested by Greeks. Of the 20 most sizable investments in the country 17 are financed with Greek capital and over 20,000 (about 6% of the workforce) are employed in Greek-owned enterprises http://www.greekembassy.org/embassy/Content/en/Article.aspx?office=1&folder=19&article=24108. At the time 28% of Greek investments were in banking, 25% in the energy sector, 17% in telecommunications, 15% in industry and 10% in food.
Active Greek companies
- Alpha Bank SkopjeAlpha Bank SkopjeAlpha Bank Skopje is the subsidiary of the Greek bank Alpha Bank, in the Republic of Macedonia.In 1999, Alpha Bank officially agreed on the purchase of a 65 Percent stake in the Macedonian Kreditna Banka...
- subsidiary of the Greek bank, Alpha BankAlpha BankAlpha Bank is the second largest bank in Greece with 450 branches throughout the country. It also has a subsidiary and branch in London, and branches and subsidiaries throughout the Balkans . Founded in 1879, it has been controlled by the Costopoulos family since the very beginning...
. - OKTAOKTAOKTA is the only oil refinery in the Republic of Macedonia. It is situated outside the capital city of Skopje. The company started up production in 1982. The managing director is Petros Karalis...
oil refinery - part of Hellenic PetroleumHellenic PetroleumHellenic Petroleum S.A. is the largest oil refining company in Greece and with its roots dating to 1958 with the establishment of the first oil refinery in Greece ....
. - Stopanska BankaStopanska BankaStopanska Banka AD is the oldest and currently the largest bank in the Republic of Macedonia by equity and branch network...
- National Bank of GreeceNational Bank of GreeceThe National Bank of Greece is the oldest and largest commercial banking group in Greece. The group has a particularly strong presence in Southeastern Europe and the Eastern Mediterranean...
holds a majority stake of the company. - Delta S.A. Dairy company.
- Titan Cement - Cement producing company from Athens.
- KAPNIKI MICHAILIDIS S.A - Tobacco industry.