Oil company asks for $1.5 billion in damages from former president of Moldova

The Moldova Prosecutor General's Office initiated a criminal lawsuit against Voronin based on a demand filed by Ascom Group president Anatol Stati, who claimed that Voronin must compensate for the damage he inflicted on him.

Company spokesman Vitalie Diaconu said at a news conference on 15 July that Voronin could serve up to 10 years in jail if found guilty of abuse of power, in accordance with the Penal Code.

According to Diaconu, in the autumn of 2008, Voronin sent a letter to his Kazakh counterpart Nursultan Nazarbayev, in which he denigrated Stati, who was running a private business in Kazakhstan. As a result of Voronin's interference, Kazakh authorities started inspections that resulted in the confiscation of the company's assets and real estate and sequestration of the contracts, accounts, money and oil wells and reservoirs.

Diaconu said that Voronin's letter was aimed at eliminating the Moldovan oil companies working in Kazakhstan, which caused damage assessed at $1.55 billion to Stati. This is the sum claimed by the businessman from the former head of state.

In a letter to the Prosecutor General's Office (PG), the businessman described all the irregularities committed, according to him, following the request made by Voronin to Nazarbayev. As a result, the PG launched an inquiry, Diaconu said.

Stati also said that Voronin caused damages of $1.657 billion to the people of Moldova by purchasing natural gas at inflated prices from the Russian gas giant Gazprom only.

Needless to say, without Gazprom, Moldova cannot import gas from Kazakhstan.

Ascom Group had intended to import into Moldova natural gas from alternative sources at a price of US$76 per 1000 cubic metres. The memorandum was discussed in 2006-2007 with former premier Vasile Tarlev. Discussions were to continue at Gazprom, but Tarlev ultimately cancelled the meeting under pressure exerted by Voronin.

The damage caused by Voronin to Ascom Group and the Moldovan people totalled more than $3 billion, company vice president Artur Lungu said. According to him, Stati was not claiming damages from the state, but personally from Voronin. If no steps were taken to remedy the injustices, Ascom Group reserved the right to appeal to the International Court of Arbitration.

From 2000 to 2008, Ascom Group, which is owned by the well-known Moldovan businessman Stati, invested more than $925 million in oil and gas exploration in Kazakhstan. According to the annual report of the three Kazakhstan-based subsidiaries of Ascom (Kazpolmunay LLP, Tolkynneftegaz LLP and Tristan Oil Ltd), investments were made in the fields Borankol and Tolkyn and in the construction of a plant to process and produce liquefied petroleum gas (LPG).

Presently, the Kazakhstan-based companies are facing a string of problems in relations with the authorities. For these reasons, Stati had the Kazakh companies put up for sale. The contract of sale, however, is blocked by Kazakh authorities.