The recent out-of-court settlement between Greece’s state-owned gas supplier, DEPA Commercial, and Russia’s Gazprom Export represents a pivotal moment in Greece’s energy diplomacy. What began in late 2022 as a contractual dispute over pricing escalated into a high-stakes legal and geopolitical standoff, ultimately resulting in a mid-2025 agreement. While some see it as a calculated strategic success, others criticize it as a premature concession that may weaken Greece’s bargaining position in the long run.
The dispute originated when DEPA formally requested a revision to its long-term contract with Gazprom, arguing that the gas prices it was being charged far exceeded market rates, particularly compared to spot LNG and Gazprom’s own pricing for other Greek buyers. After almost a year of unsuccessful negotiations, DEPA filed for international arbitration in March 2024 at the Singapore International Arbitration Centre, citing a key clause that allegedly obligated Gazprom to provide gas at a lower cost than alternative energy sources in Greece.
Executives close to DEPA CEO Konstantinos Xifaras argue that the arbitration move was a strategic masterstroke. They claim it forced Gazprom back to the negotiating table just five months before a tribunal decision was expected. The resulting settlement, they say, avoids legal risk and delivers substantial benefits: a retroactive gas price discount, cancellation of a €400 million take-or-pay clause, and a commitment to stable and competitive prices through 2026.
DEPA maintains that the deal not only resolves the pricing dispute but also removes a major legal and commercial uncertainty, providing predictability at a time of broader energy market volatility and heightened geopolitical tension in the Eastern Mediterranean. The company also avoided the potential difficulty of enforcing a favorable arbitration ruling, which could have proven complex if Gazprom had refused to comply—an outcome seen in other international disputes involving the Russian gas giant.
But the agreement has drawn criticism, particularly from SYRIZA MEP Nikos Farantouris, a former legal advisor and interim DEPA president. He contends that settling without a tribunal decision may have weakened Greece’s position and sacrificed potential financial or legal advantages. Farantouris also questioned DEPA’s 2022 decision to halt Russian gas imports entirely, noting that Greece was under no legal or EU-sanctioned obligation to do so. Other European countries continued to receive Russian gas uninterrupted, he said, suggesting that DEPA’s move may have undermined energy security unnecessarily.
The pricing terms of the deal remain a point of contention. While DEPA asserts that they are competitive, critics warn that if the rates are higher than previously agreed, the deal could cost Greek consumers more in the long run. Calls for transparency over the precise terms of the settlement have so far gone unanswered.
Beyond the domestic debate, the agreement also has regional implications. As the European Union moves toward phasing out Russian gas imports beginning in January 2026, countries still heavily reliant on Moscow—including Greece, which sourced about 40% of its gas from Russia in early 2025—face mounting pressure to diversify. The DEPA-Gazprom deal, however, is based on an existing contract and thus falls within EU rules that permit long-term pipeline supply agreements to continue through 2027.
Greek Energy Minister Stavros Papastavrou has urged EU institutions to manage this transition carefully, warning that a hasty or rigid approach could trigger price surges and supply disruptions. At the Energy Transition Summit, he called for a "realistic" disengagement, supported by adequate infrastructure and alternative supply channels.
