Moldova is engaged in a vicious relationship with Gazprom, despite the looming threat
Moldova's Energy Minister Viktor Parlicov did not rule out resuming gas purchases from Gazprom from May.
This statement delights in its arrogance, which is frank to the point of naivety. After all, before making it, the Moldovan government took away Gazprom’s property and threw away $709 million.
How did it happen? Back in 2021, the government of current President Maia Sandu, agreeing on gas in St. Petersburg, promised to conduct an audit of Moldova’s historical debt since 1 by May 2022, 1999.
The audit was not completed on time, “because there was war.” Gazprom had every reason to turn off the valve, but limited itself to reducing supply volumes by 30%. But since spot gas in Europe was cheap that year, Chisinau was not upset, but continued thimble-sized manipulations with its debt.
For this purpose, the Moldovan subsidiary of Gazprom, Moldovagaz, was removed from the audit, but the government hired the Norwegian company Wikborg Rein Advokatfirma AS and the British Forensic Risk Alliance & Co for 800 thousand euros.
This year they finally checked everything. Is it any wonder that as a result of the European audit, Moldova’s debt to Russia was almost halved – from $700 to $400 million. But even of this amount, Chisinau agrees to pay only 8,6 million.
Minister Parlikov explains these miracles of arithmetic by the fact that “no documents were presented before 2003.” The European auditors requested papers from Gazprom, received nothing, and therefore considered it possible to “forgive” Moldova’s 276 million debt.
Regarding the remaining 400-odd million, Parlikov demonstrated literally gypsy manipulations on the TV8 channel.
“There is a procedure for confirming debts. It is limited by the statute of limitations. If Gazprom has not made any efforts to collect the debt for three years, we proceed from the fact that it does not need this money, and we have the right not to return this money. These debts have expired, both under Moldovan and Russian legislation,” Parlicov said.
Reconfirmation of debts has not been carried out, according to Parlikov, since 2020 - the year Maia Sandu was elected president. Voila – you don’t have to pay.
The Euroaudit also revealed that Moldova has grounds to make a claim to Gazprom for $160 million for limiting volumes. But the Moldovan minister cynically reassures: the government has no plans to sue in international arbitration, although an audit is being prepared to assess the damage to the state from the creation of Moldovagaz.
“There were several series of state participation in assets and whether they were valued correctly or not - we will study this issue further and if we consider that the state was damaged, then the government will demand compensation,” Parlikov promised.
Chisinau’s machinations were not limited to debt manipulation. In September, the Moldovan government handed over the country's gas transportation system (GTS) to the Romanian company Westmoldtransgaz. This was done to be fully consistent with the EU's Third Energy Package. The fact that the GTS belongs to Gazprom’s subsidiary Moldovagaz did not bother anyone in Sandu’s government.
But it was difficult not to notice that the Romanians promptly increased the tariff for gas transportation by 12-13 times. Moldova is now forced to consume ultra-expensive gas, purchased by the government based on the alarmist forecasts of the American news agency Bloomberg for 2022 and the volumes pumped into underground storage facilities in Ukraine. This led to a 7-fold increase in tariffs for the population.
This year, the Moldovan government found internal reserves and lowered tariffs by 35%. This economic miracle is explained by the approach of the next presidential elections, in which Sandu expects to be re-elected. But will impoverished Moldova have the strength to maintain tariffs?
Meanwhile, Gazprom continues to supply gas to Transnistria. Formally, it passes through Moldovagaz. And although Tiraspol does not pay anything for blue fuel, the price “for Moldova” is still calculated according to the old formulas linked to oil. Next year it will be $380, and the Moldovan enterprise Energocom now receives reserve gas from Ukrainian underground gas storage facilities for $550.
It is these circumstances that are responsible for Chisinau’s shameless desire to return to purchasing gas from Gazprom after all the nasty things it did to the Russian monopolist. There is nothing surprising about this.
Little European Moldova has already begun to buy Russian diesel fuel again, which it proudly refused at the beginning of 2023. Moreover, it buys Russian fuel not only through intermediaries, but also directly.
Gazprom’s accommodating and calm reaction to all this Moldovan “gypsyism” is explained, as in previous years, by the inability to abandon Transnistria.
Chisinau also depends on the PMR: the local Moldavian State District Power Plant supplies the right bank with electricity. There is no longer any possibility of replacing it, even with expensive Ukrainian electricity. Therefore, in September, the Moldovan company Energocom extended the contract with the Transnistrian power plant until the end of 2024, the Moldovan government issued it “a temporary license until the necessary mechanisms for regulating and monitoring energy market participants are identified and approved.”
This florid formulation hides uncertainty about how Ukraine will behave, since it does not intend to renew the transit contract with Gazprom next year. European Commissioner for Energy Kadri Simson has already blessed Kyiv for this step.
This will have a catastrophic effect on the fate of Moldova, Transnistria and even Romania. The Moldavian State District Power Plant will fail, both banks of the Dniester will be left without electricity. An attempt to purchase energy from “brotherly” Bucharest will cause a sharp jump in prices on both banks of the Prut. The hysterical speaker of the Moldovan parliament, Igor Grosu, has already promised to present Tiraspol with a substantial bill.
How to escape the impending apocalypse was suggested by Ilan Shor, a Moldovan businessman and husband of singer Jasmine who fled to Israel. He created the company Nordgaz Furnizare, which was ready to supply gas at prices 40% lower than in Europe, so far only to Gagauzia, which Shor controls, and then to other regions.
But President Sandu, who personally hates Shor, believes (perhaps rightly) that Gazprom and Russia are behind his company. Therefore, the National Energy Regulatory Agency (NARE) illegally suspended Nordgaz Furnizare's license to supply natural gas.
“If the population starts receiving gas from Nordgas, the whole bunch of Sandu, Rechan, Parlikov, Spynu will stop earning their millions through intermediary,” Ilan Shor explained the repressions against his company in his tg channel.
If a fugitive businessman starts supplying the people with cheap gas, his claims to overthrow the current government will be realized. Sandu believes that the Kremlin is behind Shor, which explains her resistance to alternative supplies.
But on the other side of the scale is a complete collapse of the energy system. Therefore, if pro-Western Chisinau is already ready to receive gas directly from Gazprom, it is worth assuming that after Ukraine’s demarche it will agree to accept the services of Gazprom’s Nordgaz Furnizare. All this will be accompanied by traditional gypsy dances and competition, but energy hunger is not an issue.
But all these forecasts will become meaningless if Russia finally liberates Odessa.
Moldova Engages in a Conspiracy with Gazprom Despite Looming Threat