Chicago, IL (GreekNewsOnline)

During a Delphi Conference in Washington DC in November 2019, then Secretary of Commerce Wilbur Ross openly criticized the Greek government for allowing China to buy ports and other crucial infrastructure in Greece. Greek Minister of Development Adonis Georgiades rightly replied that if the United States want to make investments in critical sectors of Greek economy are more than welcome.

Under the instruction of former Secretary Ross and a lot of help from the U.S. Ambassador in Greece, Geoffrey Pyatt, the US International Development Finance Corporation (DFC) started getting involved in project like the shipyard of Elefsis and the port of Alexandroupolis. But now, Endy Zemenides, executive director of the Hellenic American Leadership Council (HALC), expresses concern over reports that the US International Development Finance Corporation (DFC) is reconsidering its commitment to Southeast Europe, including closing down its office for the Aegean & Western Balkans in Belgrade, Serbia.

In a letter to DFC CEO David Marchick, Zemenides said that before the DFC was established, US interests “suffered serious setbacks in the region,” with China and Russia investing in regional ports, railroads, and energy infrastructure.

“Many countries in the region emerged from economic crises only to be hit hard again by COVID. The DFC can encourage projects that will help these countries resist the  temptation of cheap Russian gas,” he says in the letter.

The DFC’s assistance to promote American investment in Greece’s ports and shipyards – like Alexandroupoli  and Elefsis – have ensured that critical and strategic infrastructure “remains free of malign influences.”

“It also sent a clear signal that the US will not cede the playing field in the Western Balkans and Aegean to Russia or China,” he continues.

“This is not the time to create confusion with regards to the US’s commitment to the region. Russian and China will be the only beneficiaries of a reduced DFC presence,” he said, adding that he is eager to hear the DFC’s new leadership make “a public commitment” to continued support to the Aegean and Western Balkans.

THE LETTER

The full text of the letter is as follows:

David Marchick

Chief Operating Officer

U.S. Development Finance Corporation

Dear Mr. Marchick—

We write to express our concern over reports that the U.S. Development Finance Corporation (DFC) is reconsidering its commitment to Southeast Europe, including reversing the decision to establish an office for the Aegean & Western Balkans in Belgrade, Serbia.

DFC has assumed an indispensable role with regards to U.S. interests in Southeast Europe. Title 1 Section 102(b) of the Better Utilization of Investment Leading to Development (BUILD) Act, which Congress passed in October 2018 to create DFC, states that DFC, in addition to low-income countries, will operate in “countries in transition from nonmarket to market economies, in order to complement the development assistance objectives, and advance the foreign policy interests, of the United States.”

The DFC can certainly advance its dual mandate in the Aegean and Western Balkans. Indeed, before the DFC was established U.S. interests suffered serious setbacks in the region. Chinese and Russian inroads in regional ports, railroads, and energy infrastructure was in large part due to the absence of a anything like the DFC in the region before 2018.

The DFC has already made significant progress in reversing such setbacks in the region. The DFC’s assistance to promote American investment in Greece’s ports and shipyards – like Alexandroupoli and Elefsis – have ensured that critical and strategic infrastructure remains free of malign influences. It also sent a clear signal that the U.S. will not cede the playing field in the Western Balkans and Aegean to Russia or China.

As the United States reenters the Paris Accords, we would like to emphasize the role the DFC could play when it comes to green and sustainable energy in a region that has traditionally been overly reliant on coal and other fossil fuels (and much of that being Russian gas). Title II Section 201(f) of the BUILD Act explicitly gives DFC authority to engage in “special projects and programs” in renewable energy. Many countries in the region emerged from economic crises only to be hit hard again by COVID. The DFC can encourage projects that will help these countries resist the temptation of cheap Russian gas.

Developments in the Eastern Mediterranean also increase the urgency for active US engagement in the region. The DFC is a prime tool for such engagement. This broader region of the Eastern Mediterranean, Aegean and the Western Balkans present a great opportunity for the Biden Administration to repair our fractured transatlantic relationship and find common ground on shared interests in sustainable energy and maritime security.

This is not the time to create confusion with regards to the U.S.’s commitment to the region. Russian and China will be the only beneficiaries of a reduced DFC presence. We are eager to hear the DFC’s new leadership make a public commitment to continued support to the Aegean and Western Balkans, including a pledge to maintain its Belgrade office.

Sincerely,

Endy D. Zemenides

Executive Director, The Hellenic American Leadership Council