logo

Case of “Silovye Mashiny”. Experts say offshore companies are banned from signing contracts with state


https://www.ipn.md/index.php/en/case-of-silovye-mashiny-experts-say-offshore-companies-are-banned-7978_1089168.html

The case of the Russian company “Silovye Mashiny” seriously affects the image of the Republic of Moldova as this company has been on the list of Western sanctions since 2008. Experts said that light should be shed on this case as it is evident that decision makers from the Government created the necessary conditions for this company to win the tender contest. Moreover, Parliament adopted a law on deoffshorization and this bans dubious firms registered in offshore zones from doing business with the state, IPN reports.

The international consortium led by the company “Horus Energy”, of which the Russian company “Silovye Mashiny” forms part, on April 8 announced that it signed a contract for the modernization and repair of thermoelectric blocks of “Termoelectrica”. Later, Deputy Prime Minister Andrei Spînu said that following the events in Ukraine, the Government ended the relations with the given company. Energy experts noted the unilateral termination of the contract in the absence of legal evidence can inflict penalties on Moldova.

“CET 2 was built in 1976. It has three thermoelectric blocks. One of them was already rehabilitated, while one of the other two can no longer be exploited and needs to be urgently repaired. The exploitation period of the third block expires in several months. It can resist during only one more winter. However, there are suspicions that the specifications for this tender contest were dedicated. I hope things will be clarified and we will find out who came with this dedication for the Russians. If the contract was signed on Friday and terminated next Monday, we can wonder what the legal reason for the termination was, what this termination means for us – will we pay damages or will be penalized somehow? ” energy expert Sergiu Tofilat stated in the program “Secrets of the Power” on JurnalTV channel.

For his part, expert of the Institute for Development and Social Initiatives “Viitorul” Igor Munteanu said the attraction of Moldova’s into a scandal involving a company covered by the Western sanctions affects the country’s image. The Government shouldn’t have signed contracts with companies registered in offshore zones, while “Horus Energy” was allegedly registered in such a zone.

“This story seriously impacts the prestige of the Republic of Moldova. The companies from offshore zones are banned from establishing relations with the state. In the previous legislature, we adopted a law on deoffshorization. No matter what capacities this company has, if it comes from Seychelles or from elsewhere, it shouldn’t have been allowed to enter into an agreement with the state. We wouldn’t have reached such a situation if the authorities had taken the sanctions policy seriously. Mordashov with all his companies has been on the list of international sanctions since 2014 as he did business with Crimea and lobbied for the gas interests of the Russian state in Germany. We didn’t subscribe to these sanctions and now suffer the consequences,” stated Igor Munteanu.

Two days ago, Deputy Prime Minister Andrei Spînu said the Russian company “Silovye Mashiny” will not implement the project to rehabilitate the energy blocks of “Termoelectrica”, noting the decision was taken following the publication of the atrocities committed by the Russian army in Ukraine.