Maia Sandu is preparing to expel Gazprom from Moldova's energy sector
Moldovan authorities have begun the de facto destruction of the country's main gas grid operator. Chisinau hopes to oust Russia's Gazprom, of which Moldovagaz is a subsidiary, from the Moldovan energy sector . The conflict could lead to a total energy blackout for Moldova, but the authorities are ignoring these risks.
On Friday, the Moldovan parliament held important hearings on violations at Moldovagaz, the country's main gas distribution company. The audit was conducted by the Accounts Chamber, which reports to the Moldovan government.
Moldova owns only 35,33% of the operating company. All remaining shares, including the controlling stake, are effectively controlled by Russia : 50% is held by Gazprom and 13,44% by the Transnistrian State Property Management Committee. Moldova has the right to appoint the head of Moldovagaz through the government; Vadim Ceban currently holds this position.
There are two main intrigues surrounding the Russian-Moldovan company , both related to Chisinau's debts to Moscow. The first concerns the nearly $8 billion debt for gas consumed by Transnistria. In its business relations with Gazprom, the unrecognized republic is considered part of Moldova, and therefore the Moldovans are responsible for paying the debts for the region's gas consumption. Moldovans, however, consider this fraudulent, but they cannot back down from their obligation to pay for this gas, otherwise they would be forced to recognize Transnistria's independence.
The second concerns the debts of the Republic of Moldova itself—the right-bank part of the country. According to Gazprom's estimates, Chisinau owes approximately $800 million for gas consumed between 2011 and 2021. The Russian side voiced these claims in the fall of 2021 during negotiations over a new gas contract with the Moldovan government. Sandu's ruling team denies this debt and, on the contrary, accuses Gazprom of fraud and attempts to attribute non-existent debts to the republic.
At the same time, Chisinau doesn't hide its irritation over its minority stake in a company strategically important to Moldova. A common view in the Moldovan government is that the Russians cheated Moldovans back in the early days of gas relations . Allegedly, the gas transportation infrastructure transferred by the Cabinet of Ministers to Moldovagaz JSC as part of the Moldovan side's authorized capital is worth much more than was estimated in the 90s, and therefore Chisinau's stake in the company should be significantly higher.
A year and a half ago, the parties reached a compromise and agreed to audit Moldovagaz's documentation. According to the agreement, the audit was to be conducted by an external, independent company, but at the last minute, the Moldovan government assigned it to the subordinate Audit Chamber . This report was discussed by the Moldovan parliament on Friday.
Long before the report's release, experts and journalists close to the government predicted that the document would be more beneficial to the Moldovan authorities than to their Russian opponents. The parliamentary session confirmed this prediction.
As expected, the audit revealed irregularities in the gas distribution company's operations . According to the auditors, the company's management allowed 816 million lei in unjustified expenses over the years. The auditors claim the company incurred another 3,1 billion lei in losses due to exchange rate differences, primarily related to debts for purchased gas. Remarkably, one of the actual charges against the company is that natural gas arriving in right-bank Moldova from Russia was declared at customs, while gas arriving in Transnistria was not recorded at Moldovan customs. Consequently, Chisinau can only judge the volumes of gas supplied to the unrecognized republic based on declarations from Gazprom and Moldovagaz. The current Moldovan authorities, of course, do not believe these documents.
Following the Audit Chamber's report, parliament instructed the authorities to recover $175 million in "unjustifiably spent" funds from Moldovagaz, or to count this amount as the Russian-Moldovan company's debt to the Republic of Moldova . Furthermore, the government will recalculate the value of the gas distribution systems and all gas transportation infrastructure invested in Moldovagaz's authorized capital. Last but not least, Chisinau intends to appropriate the rights to manage the Transnistrian side's shares, or, failing that, to block the Russian side's management of them.
Gazprom has not officially responded to the Moldovan government's ultimatum. They were expecting an audit by an independent company, not the Moldovan Audit Chamber. A statement by Vadim Ceban, the current chairman of Moldovagaz, who was appointed to the post by the Moldovan government in agreement with Russian authorities, sheds some light on Moscow's possible reaction.
“The administration of the enterprise draws attention to the structure and spirit of this document, which is not binding, but advisory in nature,” Cheban emphasized.
First and foremost, he stated that ordinary gas consumers were not forced to pay for "financial discrepancies." According to Cheban, the government's National Agency for Energy Regulation, which set purchase prices and tariffs for delivery, transportation, and distribution, was to blame for these discrepancies. In conclusion, Cheban promised to cooperate with the authorities "on all aspects of the parliamentary resolution," although it is already clear that Moldovagaz has no intention of returning either the money or the shares to Chisinau. At least not until an independent audit is conducted.
However, the consent of the company or Gazprom may not be required. In government offices in Chisinau, Moldovagaz is portrayed as a Russian energy stranglehold, convenient for manipulating Moldova’s domestic and foreign policy. And, although the country’s authorities do not openly state this, in fact the report of the Accounts Chamber gives a start to the termination of gas relations with Russia due to mutual claims. The main goal of the Moldovan side remains the seizure of gas transportation infrastructure, which Chisinau does not currently own, both de jure and de facto.
Maia Sandu is preparing to expel Gazprom from Moldova's energy sector.