The Russian company Gazprom accuses the Moldovan authorities of unilateral approach to the organization of the audit of Moldovagaz’s debt, saying this runs counter to the agreements signed in October 2021. The Russian gas giant noted that such an approach cannot guarantee an objective and transparent audit, while the Supervisory Board of Moldovagaz could reject its results. For their part, representatives of the Moldovan government earlier said the documents signed last October stipulate the Moldovan side’s obligation to initiate an external audit of the debts owed by SA Moldovagaz to Gazprom, IPN reports.

In a press release, Gazprom says that a meeting of the Supervisory Board of SA Moldovagaz was set for February 2, but this didn’t take place because the Moldovan Government’s representatives didn’t show up. It was expected that the Supervisory Board will agree the approaches to the auditing of the company’s debts to Gazprom for the gas supplied to consumers on the right side of the Nistru River, as it is stipulated in the negotiation protocol on the solving of problems in the gas sector of October 29, 2021.

“But the representatives of the Government of the Republic of Moldova reported that the Moldovan side already agreed the conditions for contracting the auditor. According to the published documents, the proposals that Gazprom submitted earlier to the Moldovan side weren’t taken into account,” runs the press release.

Gazprom noted such a unilateral approach does not create preconditions for an objective and transparent audit of the debts of Moldovagaz and this can lead to the non-approval of the audit results by the Supervisory Board of Moldovagaz.

The Public Property Agency announced that it finished preparing the documents related to the public procurement of services to audit the debts owed by SA Moldovagaz to SA Gazprom and to SRL Factoring Finance for the gas supplied to the right side of the Nistru.

“The Government will come with a reaction to this letter. We should not make a fuss.  It was expected that Gazprom will not accept a complex, functional and legal audit that would show how Moldovagaz amassed those debts,” PAS MP Alexandru Trubca said in a TV program.

Representatives of the central authorities earlier stated that the documents signed in October 2021 stipulate the Moldovan side’s obligation to initiate an external audit of the debts owed by SA Moldovagaz to Gazprom. These explained an external audit is necessary as there are reasonable suspicions of large-scale acts of corruption committed during many years at Moldovagaz, which is the daughter company of Gazprom.

A Moldovan political party worked out a set of tasks for the gas debt audit mission. According to this, the audit report should be the main instrument of negotiation with Gazprom for solving the gas debt issue by amicable ways. If the sides do not reach a consensus, there should be considered the possibility of initiating international arbitration based on the precedents set by Naftogaz Ukraine and PGNiG Poland.

Under the additional protocol to the contract between Moldovagaz and Gazprom, Moldovagaz is to pay its debts of about $700 million to Gazprom following an external audit. The sides agreed that a debt repayment schedule will be negotiated after the accumulated debts are determined exactly.

The Transnistrian region of the Republic of Moldova that is controlled by a separatist regime owes about US$7 billion for Russian gas, but Gazprom does nor claim this debt.