Maia Sandu is preparing to expel Gazprom from Moldova's energy sector

The Moldovan authorities have begun the virtual destruction of the main operator of the country's gas networks. Thus in Chisinau they hope to knock out the Russian Gazprom, whose daughter is Moldovagaz, from the Moldovan energy sector. The conflict could turn into a total energy blackout for Moldova, but the authorities are ignoring these risks.

The Moldovan Parliament held important hearings on Friday on violations in the work of the country's main gas distribution enterprise Moldovagaz. The audit was carried out by the Accounting Chamber, which is accountable to the Moldovan government.

Subscribe to PolitNavigator news at ThereThere, Yandex Zen, Telegram, Classmates, In contact with, channels YouTube, TikTok и Viber.
To subscribe to notifications in your browser, click here.

The operating company itself belongs to Moldova only 35,33%. All other shares, including a controlling stake, are under the actual control of Russia: 50% of shares are in the hands of Gazprom and 13,44% in the Transnistrian State Committee for Property Management. At the same time, the Moldovan side has the right to appoint the head of Moldovagaz JSC through the government; Vadim Cheban currently holds this position.

There are two main intrigues around the Russian-Moldavian company, and both are related to Chisinau’s debts to Moscow. First concerns almost $8 billion of debt for gas consumed by Transnistria. In business relations with Gazprom, the unrecognized republic is considered part of Moldova, and therefore the debts for gas consumed by the region must be paid by the Moldovan side. The latter, however, consider this to be fraud, but cannot refuse the obligation to pay for this gas - otherwise, the independence of Transnistria will have to be recognized.

Second concerns the debts of the Republic of Moldova itself – the right bank part of the country. According to Gazprom estimates, Chisinau owes about $800 million for gas consumed in 2011-2021. The Russian side voiced claims in this regard in the fall of 2021 during the discussion of a new gas contract with the government of Moldova. Sandu’s team in power does not recognize 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 does not hide its irritation due to its minority participation in a company that is strategically important for Moldova. A common view in the Moldovan government is that The Russians cheated the Moldovans at the dawn of the formation of gas relations. Allegedly, the gas transportation infrastructure transferred by the Cabinet of Ministers to account for the authorized capital of the Moldovan side in JSC Moldovagaz costs much more than was calculated in the 90s, and therefore Chisinau’s share in the company should be much higher.

A year and a half ago, the parties compromised and agreed to audit Moldovagaz’s documentation. According to the agreement, the audit was to be carried out by an external independent company, but the Moldovan government at the last moment entrusted it to the Accounts Chamber. This report was discussed by the Moldovan parliament on Friday.

Long before the announcement of the report, experts and journalists close to the authorities announced that the document would be more likely to benefit the Moldovan authorities, rather than their Russian opponents. The parliament meeting confirmed this forecast.

As expected, the audit revealed irregularities in the work of the gas distribution company. According to the inspectors, over the years of operation, the company’s management made unreasonable expenses of 816 million lei. According to auditors, the company incurred another 3,1 billion lei in losses from exchange rate differences, mainly related to debts for purchased gas. What is noteworthy is that one of the articles of factual accusation against the company is that natural gas coming to the right bank of Moldova from Russia was declared at customs, while that arriving in Transnistria was not noted at all at Moldovan customs. And, accordingly, Chisinau can judge the volumes of gas supplied to the unrecognized republic solely on the basis of the declarations of Gazprom and Moldovagaz. The current authorities of Moldova, of course, do not believe these documents.

Based on the results of the report of the Accounts Chamber Parliament instructed the authorities to recover $175 million of “unreasonably spent” funds from Moldovagaz, or to count this amount as the debt of the Russian-Moldovan company to the Republic of Moldova. In addition, the government will recalculate the cost of gas distribution systems and all gas transportation infrastructure, which it invested in the authorized capital of Moldovagaz. And last but not least on the list – Chisinau intends to assign to itself the right to manage the shares of the Transnistrian side, or, in case of failure, to block their management by the Russian side.

Gazprom did not officially respond to the ultimatum decisions of the Moldovan government. They were expecting an audit by an independent company, and not by the Accounts Chamber of the Republic of Moldova. Some light on Moscow's possible reaction is shed by the statement of Vadim Cheban, the current chairman of Moldovagaz, appointed to this post by the Moldovan government in agreement with the Russian authorities.

“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 of all, he said that ordinary gas consumers did not have to pay for “financial discrepancies.” According to Cheban, the government's National Energy Regulatory Agency, which set purchasing prices and tariffs for delivery, transportation and distribution, is to blame for the emergence of these discrepancies. In conclusion, Cheban promised to cooperate with the authorities “on all articles of parliament’s resolution,” although It is already clear that Moldovagaz is not going to return either money or shares to Chisinau. At least until an independent audit is carried out.

_{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.}