- The role of the Turkish bank Ziraat in Thrace, the handing over of the Aegean to Turkish fishermen, and the acquisition of Kallimanis by Dardanel.
- How the historic industry of Thessaloniki, the Macedonian Paper Company SA, passed into the hands of the Turkish Pak Group.
In the Turkish capital, POLISAN (chemicals in the Volos Industrial Park), SUOZ ENERGY (solar panels), and the marina of Mytilene. - Without publishing a balance sheet since 2020, the Greek subsidiary of Ziraat Bankası. Will the Hellenic Capital Market Commission do what the law requires?
- An investment roadshow in Istanbul with the participation of the elite of Greek entrepreneurship.
- Turks rank second in Golden Visa applications in Greece.
Greece ranks 9th in the list of 20 important countries targeted by Turkish investments abroad.
► Talking to Data Journalists:
- VASILIS FOUSKAS, Professor of International Politics and Economics, University of East London
- GEORGE AIFANTIS, Former Ambassador
- THRASOS EFTYCHIDIS, International Relations Economist
- DIMITRIS DROSOS, Lieutenant Colonel (Ret.) – Geopolitical Analyst
- DIMITRIS DIAKOMIHALIS, Former Mayor of Kalymnos Island
By Paris Karvounopoulos
The plan of the Turkish invasion into the Greek economy and its structures is reaching its climax, thanks to the inaction of the Greek governments and the greed of the Athenian elite. The evidence is revealing. The Turkish lobby has established a strong presence in Greece in recent years. Perhaps this is why JP Morgan is organizing a series of investor visits in Athens and Istanbul from April 15 to 19.
The investor roadshow will be attended by the management teams of Coca-Cola Icecek, Ford Otosan, Kos Holding, Tofas, Turkcell, Turkish Airlines, Arcelik, BIM, and from the banking sector, Akbank, and Yapi Kredi. In Greece, the management teams of Aegean Airlines, Alpha Bank, Mytilineos, National Bank of Greece, OPAP, Piraeus Bank, DEI, Athens Exchange Group, Bank of Greece, Eurobank, GEK Terna, Hellenic Energy and others.
“JP Morgan smelled blood,” a well-known businessman told the Data Journalists, seeming particularly concerned about this double roadshow, but above all about the intrusion of Turkish capital into Greece at the expense of Greek interests, as he claims.
But he is not the only one concerned about the growing Turkish presence in Greece. “Even the acquisition of Golden Visas,” he argues, “is a problem.” Turks rank second in Golden Visa applications in Greece. Although the gap between them and the Chinese is significant, their presence is growing significantly.
In the last three years, 2021-2023, out of a total of 14,875 applications to buy property with Golden Visa, 8,404 were from Chinese nationals, while Turks came second with 1,432 applications and Lebanese third with 775 applications.
This trend is continuing this year. According to the Ministry of Migration, 12,463 permanent residence permits were granted to investors in January last year. The number of permits issued to investors from Turkey increased by 6.4% compared to the same month last year.
“The Turkish investors mainly prefer Greece,” says Teuta Narazan, founding partner of Vesta Global. According to Narazan, “We make sure that Turkish citizens who choose Greece through the Golden Visa program can make high-income investments through real estate and find a permanent solution to their visa problems.”
(https://www.ekonomim.com/ekonomi/yunanistana-yatirimda-turkler-ikinci-sirada-haberi-723513)
And if the Golden Visa is considered innocent, there is a contrary opinion regarding the economic intrusion in Greece, especially in regions such as Thrace and the Aegean islands, by Ziraat Bankasi. The Greek subsidiary of the Turkish bank, which has not published a balance sheet since 2020, has branches in Athens, Komotini, and Xanthi. It closed its Rhodes branch in 2018.
Its activities consist mainly of retail banking and, to a lesser extent, corporate banking, as well as the provision of guarantees and insurance. As has been alleged in recent years, Ziraat Bank operates as a Trojan horse for Greece, mainly in the northern regions of the country, offering low-interest loans and assisting Turks in acquiring Greek real estate.
Founded in 1863, Ziraat Bank has the most extensive banking network in Turkey. It is the largest bank in Turkey with 24,556 employees, 1,751 branches (in Turkey), and 115 branches and subsidiaries in 17 foreign countries. However, as mentioned above, T.C. Ziraat Bankasi A.S. has neglected (?) to be consistent in terms of publication in the General Commercial Registry (G.E.MI.). However, no penalty or suspension of registration in the G.E.MI. has been imposed as required by law.
The other investments of the Turks
As already mentioned, the data do not lie. Official figures confirm that Turkish investments in Greece have grown exponentially in recent years. According to them, in the four years from 2019 to 2022, Turkish investments in Greece increased from $12 million in 2019 and $11 million in 2020 to $21 million in 2021 and $52 million in 2022.
Greece ranks 9th in the list of 20 important countries where Turkish investments are directed abroad. In contrast, Greek investments, according to the Central Bank of Turkey, are essentially non-existent, essentially zero in the period 2021-2022. (https://www.datajournalists.co.uk/wp-content/uploads/2024/02/ΕΤΗΣΙΑ-ΕΚΘΕΣΗ-2022-tr.pdf)
The most famous, or more precisely, the most prominent Turkish investment in Greece in recent years is that of Dardanel’s of Niyazi Önen. The 74-year-old Niyazi Önen and his family, through Dardanel, which is listed on the Istanbul Stock Exchange, acquired the Kallimanis company and two of its factories at a bargain price (the purchase amounted to approximately 10 million euros, with a significant debt reduction, reaching up to 90% for some creditors. It is noteworthy that the company’s debt amounted to 69 million euros, which was acquired by the Turkish investor for only about 7 million euros).
With the acquisition of the Kallimanis family’s troubled Greek industry, which was on the verge of collapse, Dardanel gained a foothold in European production. Today, almost two years after the deal, the Dardanel Group has doubled its sales and increased its operating profit by 65%. As for Kallimanis, it has returned to the market, at least commercially. (https://www.aa.com.tr/tr/sirkethaberleri/sirketler/dardanel-yilin-9-ayinda-cirosunu-yuzde-93-artirdi/683716)
Niyazi Önen is not the only Turkish investor to see an opportunity in Greece. The historic Macedonian Paper Company SA, based in Thessaloniki, was bought 12 years ago by the Turkish conglomerate Pak Group (https://www.melpaper.com/en/pak-group), Europe’s fourth-largest paper producer with an annual output of more than 360,000 tons. It is worth noting that the acquisition included an area of approximately 350 hectares in the Thessaloniki region.
Today, it produces 120,000 tons of paper and exports 50% of its production to the Balkans, the EU, and North Africa. As for the Turkish conglomerate, its turnover exceeds $500 million and it employs approximately 1,650 people.
Pak Group owns 75% of Kartonsan, the largest paper production company in Turkey, and 70% of Intermat, the leading flexible packaging company in Europe.
Turkish capital with a productive presence in Greece also includes POLISAN (chemicals in the Volos Industrial Area) and SUOZ ENERGY in photovoltaic panels.
The LC Waikiki clothing chain
But the Turkish presence is also particularly strong in commerce. The clothing chain LC Waikiki, owned by Turkish billionaire Mustafa Kucuk, already has 11 stores in Greece. The lingerie chain Penti entered Greece via Alexandroupoli in the fall of 2021, while Colin’s is preparing to enter Greece. It has already established the company ERK Greece Single Member IKE, whose sole shareholder is ERK Pazarlama Ve Giyim Sanayi Ticaret AS of the Turkish conglomerate Eroglu Group. Among the new members is Vakko, which has designed uniforms for Turkish Airlines and the Turkish national football team.
Even greater is the penetration of Turks, directly or indirectly, in real estate, and not only through the Golden Visa, in the islands of the Aegean and Northern Greece. These are investments that far exceed 1 billion euros. Also, in important facilities such as marinas. In one of them, the Marina of Mytilene, the Turkish company KOC has invested together with FOLLI FOLLIE AEVTE and has taken over the management of the Marina for 40 years.
Among these Turkish investment interests, many are considering the troubled fish farming group Avramar, which will be officially put up for sale in the coming weeks. If the Turks acquire the Greek fish farming group, the consequences will be manifold, including for Greek exports.
The volume of trade between the two countries is estimated at 5.4 billion euros, and Erdogan’s goal is to increase it to 10 billion euros.
The “Turkish Imperialism” in the Aegean Sea
“The advantage in war does not come from weapons, but from the money spent. Thucydides…”
The suspicion that Erdogan is studying Thucydides is becoming more justified as the years go by. And he has been at the helm of Turkey for many years. The Erdogan regime has implemented the principle of “the strong do what they can and the weak suffer what they must,” building a respectable defense industry that allows its armed forces relative autonomy. However, in Erdogan’s long presidency, we have to admit that we did not have an Imia-level crisis.
The most serious incident that threatened conflict was not the Oruc Reis and the Turkish fleet in the Aegean and Eastern Mediterranean in the summer of 2020, but the collision of F-16s in Karpathos on May 23, 2006, in which the Greek pilot Kostas Iliakis was killed. Erdogan used military threats as a means of pressure against the Greek governments he faced, but at the same time, he systematically and persistently implemented the “economic Attila” against Greece.
The intrusion of Turkey into the Greek economy and its structures may have been perceived recently by the citizens, but it is a plan that has been developing for many years. It is progressing thanks to the inaction of the Greek governments, but also thanks to the greed of the Greek elites who do not understand the importance of “red lines” in economic cooperation and concessions that could harm national interests and rights.
Greece seems to be on a path of “Finlandization,” and the question is whether there is a way back. This trajectory was confirmed by the recent meeting between Mitsotakis and Erdogan in Athens, where the prospects for even greater economic cooperation were duly celebrated. For the time being, this cooperation has resulted in Turkish takeovers of Greek companies, including critical infrastructure.
Mr. Vasilis Foukas, Professor of International Politics and Economics at the University of East London, and author of the book “Turkish Imperialism and Deterrence”, describes in its pages the “conquest” of our country by Turkey. He highlights the continuous and structured complicity of the country’s political elites towards all of Turkey’s historical-strategic demands regarding Cyprus, the Aegean, and Thrace.
This study explains historically why this is happening, demonstrates with evidence the dramatic rise of the Turkish economy compared to that of Greece, and defines Turkey as a regional imperialist power (sub-imperialism) as it exports both significant capital and power. In the course of his research for his book, he was amazed at his discoveries.
Vassilis Fuskas: Professor of International Politics and Economics at the University of East London
Ambassador (retired) George Aifantis, who also served in Finland, draws a parallel between the case of its forced “satellitization” by Russia and the relationship that seems to be developing between Greece and Turkey.
George Aifantis, Ambassador (Ret.) to Data Journalists
Retired Lieutenant General and geopolitical analyst Dimitris Drossos points out that the strategy of Turkish economic infiltration in Greece, and especially in Thrace, has evolved over the last 20-25 years.
Dimitris Drossos: Lieutenant General (Ret.) – Geopolitical Analyst
Thrace was and is the obvious target of Turkey. What we see, however, is not the ability to do anything to prevent Ankara from achieving it. The Turkish bank Ziraat is the most valuable tool of Turkish expansionist policy. It offers low-interest loans for the purchase of land and businesses in Thrace.
Thrasos Eftychidis: Internationalist Economist
If the loans granted by Ziraat are not serviced, what will happen to the mortgaged Greek properties? Will the Greek properties end up in the hands of the Turkish bank that finances, among other things, Turkey’s armament programs?
Dimitris Drossos: Lieutenant General (Ret.) – Geopolitical analyst
Turkish bank Ziraat operating in Thrace finances Turkish armaments
Thrasos Eftychidis: Internationalist Economist
How big is the Turkish intrusion into the Greek economy? It is huge, but it is difficult to estimate exactly because in many cases the Turks enter the Greek economy under cover. How does this happen? Quite legally, as explained to Data Journalists by someone who knows how Turkish companies are acquiring more and more business in Greece.
Law No. 4412/16, as amended, which is currently in force, incorporates a mandatory European directive for public works. It stipulates that all public works are to be carried out by European companies (including Greek ones) in their capacity as contractors.
However, the nationality of the main contractor is not specified. Therefore, European and Greek entities (individuals or companies or joint ventures) that win the contract through tendering or direct award (due to technical uniqueness, urgency, superiority) for the contract, usually have Turkish companies as main contractors that directly provide cheap materials. We even have manhole covers from a Turkish general contractor.
This was already happening before Law 4412/16. In addition, Turks who have European citizenship (e.g. German), through European companies (e.g. German, Italian, Spanish), secure public works contracts in Greece (as Europeans) and hire Turkish companies as main contractors. This is a common and legal practice.
Dimitris Drossos: Lieutenant General (Ret.) – Geopolitical analyst
The most characteristic example of Turkish economic penetration is what is happening in the Aegean with fishing. It is no exaggeration to say that in this case we are no longer talking about penetration but about outright conquest. For at least three years, the Turks have been fishing wherever and whenever they want in every corner of the Aegean and beyond. They have even reached Kythira, where they fish undisturbed just a few meters from Kapsali.
Dimitris Diakomichalis, longtime mayor of Kalymnos, who experienced the events of Imia firsthand, speaks to Data Journalists about the issue:
Dimitris Diakomichalis, former mayor of Kalymnos
The massive presence of the Turkish fishing fleet in the Aegean, without any interference, was followed by another development: in May 2021, it was announced that the largest Greek fishing company, Kallimanis, had passed into Turkish hands.
Founded in 1956, Kallimanis was the leader in the Greek frozen seafood market with a 25% market share and a turnover of over 42 million euros. At one time, it was among the top 40 Greek companies in the food and beverage sector and employed 150 people.
The Turkish company Dardanel acquired the Greek company Kallimanis for 6.2 million euros. More precisely, it acquired Kallimanis’ loans from Greek banks, which amounted to 62.2 million euros, for 6.2 million euros, a 90% discount. The Turkish businessman negotiated with the banks for two years and managed to obtain a 90% discount, commonly referred to as a “haircut”. He also set up a subsidiary, where else, in Komotini.
Dimitris Diakomichalis, former mayor of Kalymnos
How does Greek business capital react to the blatant Turkish economic invasion? Rather positively, judging by what is being said without being contradicted by anyone in the business world.
Thrasos Eftychidis: Internationalist Economist
After all these developments, we should not be surprised by the prediction of the American think tank Stratfor. According to their estimates, Turkey will be among the top 10 economies in the world by 2050. They have published a map showing that Greece and Cyprus, as well as the entire Balkans, the Caucasus regions, the Middle East, and most of North Africa, will be in Turkey’s sphere of influence by 2050.
Will anybody in Greece try to prevent this?;
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