Greece has lost an appeal against an arbitration award of more than EUR 1.2bn ($1.35bn) in a case involving Hellenic Shipyards.
The Athens court of appeal rejected the government’s request to set aside the 2017 decision in favour of Middle East group Privinvest.
The case related to Greece's default on payments to Privinvest, which is the controlling shareholder of Hellenic.
Privinvest said it had made substantial investments in Hellenic in 2010, but Greece defaulted on its obligations.
The International Chamber of Commerce (ICC) found that the Greek government also mishandled a European Union state aid case.
As a result, Hellenic Shipyards suffered severe losses and had to suspend its operations, Privinvest said.
Since March 2018, a special administrator appointed by Greece has been in charge of Hellenic and is in the process of selling it.
Greece has now been ordered to make immediate payments of more than EUR 200m and was required to make further payments of more than EUR 800m over time for the state submarine programme at Hellenic.
Privinvest said: "The Hellenic Republic must now respect its legal obligations and stop the expropriation. In the meantime, Privinvest will continue to pursue its rights before all available venues in Greece and internationally.”
It added: “If the Hellenic Republic had implemented the ICC award, it could have given new life to Hellenic Shipyards."
It has been reported that Greece wants to split the yard into commercial shipping and naval units.
