The owners of the Sea Diamond cruise ship that sank off the island of Santorini two months ago said yesterday they would fight a government imposed 1.17-million-euro fine for polluting the sea which they described as being unfair.

Cypriot-owned Louis Hellenic Cruises called the fine “entirely unfair and unfounded,” saying it had done all it could to minimize the pollution from oil and lubricants leaking out of the vessel, which lies 100 meters below the surface of the sea.

“While the incident has taken place at a location of particular natural beauty, the pollution caused thereby is considered to be of rather small significance,” the company said. “And does not justify the minister exhausting the utmost rigor by imposing the highest fine provided,” it added.

The company said that it has also informed Greek authorities that pumping out the oil remaining in the wreck would be “extremely dangerous.”

On Monday, the Merchant Marine Ministry fined the company, saying that large sections of the coast near the site were stricken with pollutants and that rare marine species were at risk.

The port of Santorini has imposed a separate 560,000-euro fine.

Louis had initially said that it would submit a plan by June 6 detailing how it would pump out the remaining oil from the wreckage. Advisers have since warned against salvaging the wreck, or attempting to drain the fuel from the tanks.

The company planned to replace pollution catchment dams in the area around the wreck with new ones that would limit any pollution from the oil seepage which it says has been lessening.

The Santorini Port Authority is fining the company an additional 8,804 euros for every day it does not pump out the oil. This week representatives from Santorini said they would appoint a salvage company to raise the wreck if Louis does not comply.

Environmentalists say the Sea Diamond is now perched on a ledge and could be dislodged in the event of even a mild earth tremor. Should that happen, a subsequent oil spill could stretch for tens of kilometers, they have warned.