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Kroll 2 report: Summary and Reactions



On 21 December 2017, the National Bank of Moldova published the summary of the investigation report made by Kroll and Steptoe&Johnson. The report, otherwise called “2nd Kroll report”, completes the 1st Kroll report on the loan exposure of the Three Moldovan banks (BEM, BS, Unibank) that were defrauded in 2012-2014.

The 2nd Report comes with a more detailed scheme of how the leading “Shor group” defrauded Banca de Economii, Banca Socială, and Unibank by directly participating in the administrative councils of these banks and by falsifying reports on bank liquidities. Moreover, Kroll revealed several laundering mechanisms that were used to channel the funds from the three banks to the destination accounts. Even if it mentions the name of Ilan Shor as one of the facilitators and beneficiaries of the banking frauds, the summary does not provide any other names in order not to impede the ongoing investigation and prosecution in some cases.

What 2nd Kroll report says

  • Control over the Moldovan banks, and not only the Three failed ones, was constantly the aim of several interest groups. Several shareholders took advantage of the poor evaluation of banks’ shares and some could acquire small portions of shares through proxies. In the case of the Three Banks, the so-called “Shor group” could take control by buying shares on the behalf of off-shore companies, thus hiding the origin of the funds;
  • The administration councils at the Three Moldovan Banks were acting in coordination, involving conflicts of interests and integrity lack in the bank governance process. At Banca de Economii, where the Moldovan Government was the main shareholder, the Government delegates were periodically not invited to the meeting of the administration council;
  • What Kroll continues to say in its 2nd report is that Ilan Shor and around 77 companies in his entourage are known to be the beneficiaries of the fraudulent loans given between 2011 and 2012:


  • The liquidity level at the Three Banks was maintained at acceptable levels with the help of resources coming from pensions and social security funds operated by the respective banks, with the help of loans given by the National Bank guaranteed by the Moldovan Government, but also with the help of fake deposits in Russian banks;
  • The summary shows that most of the defrauded funds were channeled through Latvian banks (otherwise called “Core Laundering Mechanism”) for mostly British off-shore companies.

    Source: Kroll

    The Core Laundering Mechanism based in Latvia was either used for paying the loans back or to send the funds in different bank accounts in multiple jurisdictions such as Cyprus, China, Russia, Switzerland, USA or Hong Kong. Some banks in Moldova and Estonia were also used to launder money and disguise their origin.

    Source: Kroll;

  • Since some of the loans, worth approximately 2 billion USD, were channeled back to the origin banks to create a good credit score, the net loss of the Three Banks between 2012 and 26 November 2014 is estimated at 600 million USD;
    Source: Kroll
  • So far, the traces of only 50 million USD out of the total sum could be totally discovered;
  • Kroll and Steptoe&Johnson are planning to present a more detailed investigation in 2018 in Moldova;


  • According to Expert-Grup, the 2nd Kroll report did not fully explain the role of the state guarantees issued in November 2014, but also the actions conducted by the Moldovan Government regarding the reimbursement for the clients of the Three Moldovan Banks. Moreover, multiple NGOs called on the Moldovan Government to abandon the initiative to decriminalize several economic crimes, including banking frauds, an action would impede the prosecution of those involved in the “Moldovan Grand Theft” and encourage new frauds in the area;
  • Ilan Shor, the main figure in the “Grand Theft”, announced that his lawyers filed in court against Kroll for defamation, conspiracy to injure by unlawful means and wrongful interference with his economic interests. According to Shor, the reports issued by Kroll do not reveal the real beneficiaries of the frauds;
  • Pavel Filip, Prime-Minister of Moldova: “If we had to publish all the names that are found in this report, I assure that 90% of the names are absolutely honest people, but that were simply part of this circle. These names cannot be made public”, claimed Moldova’s PM, promising that all the responsible persons would be prosecuted;
  • Maia Sandu, PAS leader, ex-Minister of Education in 2014, did not seem surprised that Kroll pointed out to Shor’s primary role in the banking frauds, but rather asked his case is slowed down by the Prosecution’s Office. Her party organized a flashmob asking for the restart of Shor’s case. In addition, Sandu stated that current Parliament speaker, Andrian Candu, was the main promoter of the state guarantees for the loans of the National Bank to the failing banks;
  • Andrian Candu, speaker of the Parliament and Economy Minister in 2014, is waiting for the Kroll experts to come in January 2018 in Moldova to coordinate the investigation of the banking frauds;
  • Iurie Leancă, PM in 2014, now appointed Deputy PM, says that he is the most interested in the results of the Kroll investigation, but rejects claims his Government rushed into offering the huge guarantees for BNM loans.

The reaction of the Moldovan people to this 2nd Kroll report is that of confusion: nothing much new was revealed and the main figure of the “Grand Theft” is only under judiciary control in a delayed case.

Currently studying International Relations at the University of Pécs, Hungary. Study focus: Transnistrian conflict settlement, Moldovan statehood, Moldovan democracy.


The economy of the Republic of Moldova increased by 4.5% in 2017



The economy of Moldova registered an increase of 4.5% in 2017 compared to 2016, the GDP exceeding 150 billion lei, according to the National Bureau of Statistics.

The growth of GDP contributed to various economic activities, with the largest share being recorded by wholesale and retail trade, maintenance and repair of motor vehicles and motorcycles, transport and storage, accommodation and catering – with a contribution of 1.3 points percentage of GDP growth.

For the years 2018-2020, the Ministry of Economy and Infrastructure forecasts an increase in the economy by 3-4%.

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Over 20 million US dollars from Moldova’s electricity bills ended up in offshore firms’ accounts// RISE

Over 20 million dollars from electricity invoices paid by Moldovan consumers have reached the accounts of offshore companies. The money was removed from the Victoriabank accounts of a company in Tiraspol that has been interfering with the supply of energy for several years in Moldova.



RISE outlined the scheme by which the buffer company in the separatist region became the main electricity supplier overnight, earned millions of profits and hid them in tax havens.

Only around 20% of the country’s total electricity demand is produced on the territory of the Republic of Moldova on the right bank of the River Nistru. In recent years, the battle for Moldova’s electricity supply contract has usually been made between two regional players: a representative of the Ukrainian group DTEK, which is part of the business empire of Ukrainian billionaire Rinat Akhmetov, and the Cuciurgan plant, which is owned by the giant Inter RAO UES, controlled by the Russian state.

Source: MediaCenter (The Cuciurgan plant)

How EnergoKapital appeared in the scheme:

After the spring of 2014, when the Ministry of Economy announced that between April 1, 2014, and April 1, 2015, the Republic of Moldova bought electricity from DTEK Vostokenergo and from the Cuciurgan plant, due to the crisis in the Eastern Ukraine that degraded into an armed conflict, in autumn of 2014, DTEK has completely ceased delivery of energy to the Republic of Moldova. Consequently, DTEK’s contractual obligations were taken over by the Cuciurgan Power Plant.

At this point in the scheme, an intermediary appeared – the company EnergoKapital in Tiraspol, which was founded in October 2014, a few weeks before the DTEK ceased its deliveries. Founders of the company that emerged overnight were Bas-Market SA in Tiraspol, with offshore shareholders, and Ornamental Art Limited in Hong Kong.

In the following years, the EnergoKapital’s license was prolonged four times, with the left bank becoming the main electricity supplier in the Republic of Moldova. Thus, from the end of 2014 until the end of March 2017, EnergoKapital delivered energy worth about 400 million dollars to the consumers on the right bank of Nistru.

The offshore compromise

Victor Parlicov, the former director of the National Energy Reglementation Agency, claims that such schemes have happened in the past, but the emergence of EnergoKapital as an intermediary is also due to some misunderstandings between business partners in Chisinau, Tiraspol, and Moscow.

Former director of EnergoKapital in 2014-2016, Mihail Dobrov, now head of Dnestrenergo, an enterprise that manages Transnistrian energy transport networks, refused to speak on this subject.

Criminal law in Chișinău

The criminal scheme by which Moldova was supplied with electricity also came into view of the law enforcement bodies, the General Prosecutor’s Office, stating beforehand that the EnergoKapital intermediary figured in a criminal case. Vladimir Mosneaga, prosecutor at the Office for Combating Organized Crime and Special Causes, refused to rule on the file, suggesting that RISE should wait for the official response.

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2017: EU almost equals CIS at individual money transfers to Moldova



Structure of net transfers of funds from abroad to individuals by geographic areas, 2017 %, Source:

The National Bank of Moldova (NBM) published the report on the individual money transfers from abroad to Moldova in 2017. NBM reports that around 1199 million USD were sent to individuals in Moldova.

Some 85,2% of the money was transferred via money remittance systems (USD, EUR or RUB). The currency structure of money transfers (recalculated in USD) was as follows: USD – 570,54 million, EUR – 522,37 million, RUB – 94,40 million and other currencies – 12,66 million.

The National Bank noticed a continuation of the downward trend of transfers from the CIS countries, while the EU transfers increased by 20,3% compared to 2016.

Dynamics of transfers from CIS and EU in to of individuals (2012 – 2017 annual dynamics; 2017 monthly dynamics), %

Money transfers from other states (except for the CIS and the EU) totaled 30,7 percent in 2017:

Structure of net transfers of funds from abroad to individuals by geographic areas, 2017 %,

96,2% of the CIS transfers originated in Russia.

Within the money transfers from the EU countries, Italy accounts for the largest share of 34,9 percent, being followed by the United Kingdom (14,0 percent), Germany (13,9 percent), France (8,1 percent), Spain (3,3 percent), Ireland (3,0 percent), Poland (2,8 percent), Czech Republic (2,6 percent), Portugal (2,5 percent), Romania (2,4 percent), Belgium (2,1 percent), Cyprus (1,8 percent) and Greece (1,3 percent).

Moldovan remittances still heavily rely on the Russian market: 402,63 million USD (or 33,6% of money transfers) originated in Russia. Other leading remittance sources are: Israel – 17,1 percent (205,02 million), Italy – 12,0 percent (143,83 million), the USA – 7,9 percent  (95,13 million), United Kingdom – 4,8 percent (57,88 million), Germany – 4,8 percent (57,56 million), France – 2,8 percent (33,60 million), Turkey – 1,3 percent (15,30 million) , Spain – 1,1 percent (13,74 million), Ireland – 1,0 percent (12,31 million).

Dynamics of money transfers (top three states) to individuals (2012 – 2017 annual; 2017 monthly), %, Source:

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