Connect with us

Economy

“State secret”: Finance Ministry refuses to publish EU letter “appreciating Moldova’s progress” on €100 mln. pact

Published

on

22 May 2018- Newsmaker.md was refused by the Finance Ministry to obtain a copy of the letter of the European Commission on the fulfillment of the first 10 priority actions, necessary for disbursement of the €100 million fund.

Signed by Finance Minister Octavian Armașu, the refusal letter explains to Newsmaker that the letter contains information that is subject to the “state secret” protection due to the national security risks of publishing it.

In March 2018, Armașu declared that the letter from the DG ECFIN (European Commission) appreciated the efforts of the Moldovan authorities on the fulfillment of the first 10 (28, in total) conditions from the agreement on the 100 million euros macro-financial assistance.

This “appreciating” letter was then requested by the Chișinău-based Center for Policy and Reforms (CPR Moldova), but the request was refused on the claim that NGOs cannot request information from the state institutions. Now, CPR Moldova is suing the Finance Ministry for violating the access to information laws, suggesting that an NGO is nothing but an association of individuals, which should freely access information of public interest. Moreover, CPR is asking the Ministry to present a copy of the report on the implementation of the first 10 conditions for the disbursement of the first tranche of those 100 million euros.


On 23 November 2017, the Republic of Moldova signed the agreement with the European Union regarding the macro-financial assistance of 100 million euros: 40 million of grants and 60 million as a loan. The so-called MFA was requested in August 2015 and in March 2016 by the Moldovan authorities. After long debates on the conditionality, the European Parliament, and the EU Council came to an agreement to offer Moldova the macro-financial assistance for 2 years and a half in three tranches, whose disbursement is conditioned by a certain list of criteria. According to the agreement, the European Commission will monitor the progress on key reforms together with the International Monetary Fund.

Economy

Komstroy ready to recover Moldova’s contested energy debt by all means, including in the US

Published

on

Komstroy intends to recover Moldova’s energy debt from 1999-2000 by “all legally available means”, the company’s lawyers from AGG wrote in an email to Moldova.org.

Even though an appeal decision might be made by the Paris Appeal Court at the end of this month, Komstroy is not constrained to wait for the court’s decision and could enforce the D.C. Court decision from 23 August 2019 in the United States:

Accordingly, Komstroy has full right to enforce judgment of the U.S. court in the United States against relevant Moldovan assets. Moreover, under U.S. law, Komstroy has full right to demand disclosure of financial information from financial institutions and business partners with which Moldova maintains commercial relations.

Responding to Moldova’s Justice Minister calling the $58 million claim a typical “scheme” to milk the state budget, Komstroy’s lawyers insisted that its predecessor, LLC Energoalliance, provided electrical energy in the context of harsh economic conditions for Moldova:

It is unfortunate that Energoalliance’s contribution to Moldovan economy is now questioned. Komstroy strongly denies that there was anything illegal with its power supply structure.

In addition, Komstroy calls the Moldovan government to the negotiating table.

Back in 2013, an ad-hoc arbitration tribunal concluded that Moldova had violated an investment commitment under the Energy Charter Treaty (ECT) by not paying debts owned to Komstroy’s predecessor (LLC Energoalliance- based in Ukraine) on the deliverance of electric power in 1999-2000. Thus, the Moldovan government was allegedly owing around $46,5 million. The tribunal’s decision was disputed by the Moldovans at the Paris Court of Appeal, which subsequently ruled in 2016 that the ad-hoc tribunal “misinterpreted the subject debt as an “investment” under the ECT” (Case No. 14-cv-01921 (CRC)).

According to sic.md, LLC Energoalliance is associated with the more-than-controversial oligarch Veaceslav Platon and his involvement in the even more famous Russian Laundromat.

Here are the full answers from Komstroy’s lawyers to Moldova.org’s questions:

Continue Reading

Economy

Moldova likely to pay $58 million debt to Platon-associated energy company, case returns to Paris Appeal Court

Published

on

The government of the Republic of Moldova is likely to be obliged to pay a $58 million award to Komstroy, an Ukrainian energy company closely associated to now-imprisoned oligarch Veaceslav Platon.

As Law360 reports, the award was reconfirmed by the U.S. District Judge Christopher R.Cooper on 23 August, when Moldova was rejected the claim that it had “been denied due process” in an arbitration case within an ad-hoc arbitral tribunal in Paris. Back in 2013, the tribunal concluded that Moldova had violated an investment commitment under the Energy Charter Treaty (ECT) by not paying debts owned to Komstroy’s predecessor (LLC Energoalliance- based in Ukraine) on the deliverance of electric power in 1999-2000. Thus, the Moldovan government was allegedly owing around $46,5 million. The tribunal’s decision was disputed by the Moldovans at the Paris Court of Appeal, which subsequently ruled in 2016 that the ad-hoc tribunal “misinterpreted the subject debt as an “investment” under the ECT” (Case No. 14-cv-01921 (CRC)). In its attempts to find recognition of the tribunal’s decision, Komstroy asked the D.C. Court to examine the case, even though the French Cassation Court returned the case to the Appeals Court in 2018.

Notwithstanding the ongoing proceedings in Paris, the US Court ruled in late 2018 that the award can be enforceable and more importantly, its amount could be increased to nearly $58 million, considering the exchange rate from the award date.

After the ruling on 23 August, Gene M.Burd, attorney for Komstroy, told Law360 that it’s “pleased” with the US Court’s decision to determine the Paris ad-hoc tribunal’s right and scope to act upon the role demanded by Moldova and the Ukrainian energy company.

Moldova’s Justice Minister, Olesea Stamate, rushed (on 11 September, when the US court decision got out into the wild) to explain that the payment of the award can be enforceable only after the Paris Appeals Court issues a final ruling at the end of the month. As quoted by Ziarul de Garda, Stamati dismissed Komstroy’s claim as a a “scheme that was applied by some persons to milk the public budget”, describing the debts as “bogus”, “sold at double price”. In addition, the Minister announced that Moldova contested the US court decision.

As Sic.md explains in a fact checker, Moldova’s problems began back in Paris, where lawyer Victor Volcinschi was reportedly defending the position of the Ukrainian company instead of the Moldovan side. Additionally, the new law firm, Bukh Law Firm, subcontracted in December 2018, was not paid between February and April 2019 by the previous Democrat government, putting the whole defence at risk.

According to sic.md, LLC Energoalliance is associated with the more-than-controversial oligarch Veaceslav Platon and his involvement in the even more famous Russian Laundromat.

Continue Reading

Economy

A mission of the International Monetary Fund led by Ruben Atoyan is coming to Moldova

Published

on

A mission of the International Monetary Fund (IMF) headed by Ruben Atoyan will be on an official visit to Chisinau from June 26 to July 10, 2019, writes ZdG.

According to an IMF press release, the mission will hold talks with the authorities in the context of the revision of the IMF-funded program under the Extended Fund Facility (ECF) and WFP arrangements. The mission will analyze recent economic developments and progress in program implementation, as well as update and assess the macroeconomic outlook and discuss with authorities about macroeconomic policies in the coming period.

Continue Reading
Advertisement

Latest News

Economy1 week ago

Komstroy ready to recover Moldova’s contested energy debt by all means, including in the US

Komstroy intends to recover Moldova’s energy debt from 1999-2000 by “all legally available means”, the company’s lawyers from AGG wrote...

Economy2 weeks ago

Moldova likely to pay $58 million debt to Platon-associated energy company, case returns to Paris Appeal Court

The government of the Republic of Moldova is likely to be obliged to pay a $58 million award to Komstroy,...

Politics1 month ago

Parliament asks prosecutors to indict Moldova’s ex-PM, central bank governor, and 2 ex-ministers for negligence over 2014 frauds

The Parliamentary committee on the investigation of the circumstances around the devaluation of the baking system requested the Moldovan prosecutors...

Society2 months ago

Interview with Heritage director, Robert Ford: ”A society investing in education lays the foundation for prosperity, peace and ability to face the challenges of the future”

What made you take up educational work? Give us your essential bio. Like all good teachers, it was the influence...

Politics2 months ago

Maia Sandu urges Tiraspol to lift the travel ban for officials of the Republic of Moldova

Prime Minister Maia Sandu had a meeting with representatives of the mediators and observers in the “3+2” negotiation format. The...

Opinion2 months ago

President Igor Dodon’s Past Support for Irredentism Against Romania and Moldova’s New Government

This opinion piece was written by Dr. Ionas Aurelian Rus, Associate Professor of Political Science at the University of Cincinnati Blue...

Important2 months ago

Dumitru Alaiba: Vlad Plahotniuc has a Czech nationality as well?

Deputy of the ‘ACUM’ bloc Dumitru Alaiba wonders whether the former DPM leader and oligarch Vlad Plahotniuc is Czech citizen....

Advertisement

Opinions

Advertisement

Trending