The investment freeze expected until decisions are reached and repercussions analyzed with regards to the UK referendum’s Brexit outcome, if the result is implemented, is the greatest concern for the real economy, the energy sector being no exception.

At present, the perceived elevated risk and possible impact on borrowing costs, rather than the direct effects of a Brexit, is the biggest threat faced by energy-sector investments in Greece. Investments in the wind-energy sector could be exposed to this threat. The same applies for investments in energy networks, natural gas, as well as the breakaway plan for IPTO, the power grid operator, from parent company PPC, the main power utility, in a procedure to include the sale of between 20 and 25 percent to a European strategic investor.

This Thursday (June 30), PPC is scheduled to hold a general shareholders meeting during which approval of the plan to offer at least 20 percent of IPTO is expected.

Authorities hope the interest being expressed by European companies for IPTO will not be affected by the latest investment risk increase perceived for Europe’s south.

The current deteriorated investment climate may not exclusively concern Greece, but it does once again put the spotlight on the country as one of the fundamental weak spots of the EU.

“The market uncertainty being caused by the vote in favor of Brexit will affect the fragile eurozone economies in Europe’s south. Bond yields for Spain, Italy, Portugal and Greece will possibly increase,” geopolitical analyst Strafor warned in a recent report.

This new crisis hailing from the UK comes at a crucial time for Greece and the effort being made to revive the Greek economy. The investment climate has suddenly become negative amid the meltdown of markets. Developments between the UK and EU over the next few weeks will be crucial.