The agency reported that a relaxed Petrac made a brief appearance at the Igoumenitsa court, wearing a polo shirt and light trousers.
"I would like to say good, good luck to my Prime Minister (Ivo) Sanader in his political suicide," Reuters quoted Petrac as saying.
Petrac made his appearance in the company of attorney Alexis Kougias whom he chose to represent him. Kougias said that the international arrest warrant against his client was based on manufactured accusations.
"He is persecuted for failing to reveal the hideout of (runaway Croatian general Ante) Gotovina," Kougias told the judge.
The Croatian businessman was arrested by members of the Greek police and coast guard on board a ferry bound for Italy, the media advisor at the Greek Embassy in Zagreb, Ioannis Tzortzis, told Hina.
Tzortzis said that the case of two Croatian nationals, who were arrested with Petrac and whose identity Tzortzis would not disclose, was being dealt with separately.
Greek sources in Igoumenitsa, who spoke on condition of anonymity, said that the two men were Stjepan Hucika and Stjepan Juricko.
Tzortzis said that Petrac, who at the time of arrest had a fake passport with him, would be transferred to a maximum security prison on the island of Corfu, where an appeals court was located.
Petrac, for whom Interpol issued an arrest warrant, had been on the run since the kidnapping of General Vladimir Zagorac's teenage son in February last year. A year later the Zagreb County Court found him to be the mastermind of the kidnapping and sentenced him in absence to six years in prison.
Petrac's name has been repeatedly mentioned in the context of a network helping the runaway general Ante Gotovina, who was indicted for war crimes by the Hague tribunal in July 2001.
After the EU in March this year refused to start previously announced accession talks with Croatia, Prime Minister Ivo Sanader launched an action plan aimed at destroying the network of Gotovina's supporters.
Petrac's defence attorney in Zagreb, Marijan Pedisic, said he would request a retrial for his client if he was extradited by Greek authorities.
Pedisic said he hoped to contact his client in the next two days.
Asked whether he would oppose the extradition request which the Croatian Justice Ministry sent to Greek authorities on Wednesday evening, Pedisic said it was too early to talk about that.
Pedisic said he believed that the arrest of the alleged organiser of the kidnapping, Ivan Matekovic, who was also sentenced in absence and whose attorney has also announced a retrial motion, was a fact enough to move for a retrial of his client.