The acting head of Moldova’s natural gas company Moldovagaz, Vadim Ceban, said that the $709mn debt cited by Gazprom as a reason for cutting supplies to Moldova on January 1 is already included in his company’s financial reports.

The debt is not recognized by the government of Moldova, in its position as a Moldovagaz shareholder that might see its stake diluted dramatically in the event of Gazprom seeking a debt-equity swap. 

Gazprom does not insist on the immediate payment of the debt but wants it settled, Ceban said in an interview given to TV8 channel and quoted by local and Russian media.

“The … documents are ready for being signed,” said Ceban, implying imminent settlement procedures between Moldovagaz and Gazprom. In principle, this should unblock gas supplies to Moldova (specifically to the separatist Transnistria region), but may pave the way for a more dominant position for Gazprom in Moldovagaz’s ownership.

Ceban serves as acting head of Moldovagaz because the company’s shareholders, Gazprom and the government of Moldova, failed to appoint a new president of the managing board — a conflict that extends on the recognition of the $709mn claim made by Gazprom.

The Russian group became the majority owner of Moldovagaz, which in turn owns the distribution and part of transport infrastructure in Moldova, by the capitalisation of claims for the gas delivered.

Moldova’s government recently mentioned the option to nationalise Moldovagaz.

On December 30, Moldovan Prime Minister Dorin Recean asked the government to begin preparations for the possible nationalisation of Moldovagaz, in which Gazprom holds a majority stake.

In addition to Gazprom's 50% stake, the pro-Russian separatist region of Transnistria holds 13% of Moldovagaz's shares, while the Moldovan government holds 35.6%.

Ceban explained that the documents “for the settlement of the debt [the specific word used by Ceban was vague]”, which confirm the historical debt of Moldovagaz to Gazprom of $709mn, are already drafted. The debt is related to the right bank of the Dniester, and does not involve Transnistria, Ceban stressed.

"This debt is in the accounting records, it was not written off. The documents are ready to be signed," said the head of Moldovagaz.

According to him, Gazprom has every right to demand the payment of this debt, especially since Gazprom has a decision to Commercial Arbitration Court in Moscow regarding the total debt of Moldovagaz.”

But the financial reports published by Moldovagaz don’t seem to include the $709mn debt mentioned by Gazprom and Ceban.

Moldovagaz’s balance sheet as of mid-2024 includes MDL10.6bn ($563mn) current debt “related to participating interest” that is debt owed to affiliated parts. The affiliated parties are Moldtransgaz, Tiraspoltransgaz and the local gas distribution subsidiaries. Furthermore, this is “current debt”, while Moldovagaz’s Ceban said the $708mn debt is “not related to the current payments”.

The $709mn is ten times the equity (at book value) of Moldovagaz and larger than the company's total assets.

The $709mn debt is not recognised by the government of Moldova. The historic debt dates from the 1990s and 2010-2014,

According to an audit report by Wikborg Rein Advokatfirma AS and Forensic Risk Alliance LLC for the Moldovan authorities, no documents exist for part of the debt ($278mn). An other part of the debt ($400mn) is awarded by Russian arbitral bodies, therefore, can no longer be enforced in Moldova, and part of Moldovagaz’s expenditures ($143mn) were not approved by the national energy regulator ANRE.

Finally, the consulting firm confirmed a $8.7mn debt. Moldovagaz may have a counterclaim for approximately $160mn of lost transit revenues, paid by Gazprom to Tiraspoltransgaz.

Gazprom does not recognise the audit findings.