Moldova probes Lukoil investment contract breaches

There are suspicions of violations of the investment contract provisions by Lukoil, and the authorities will clarify responsibilities through legal procedures, Prime Minister Alexandru Munteanu said.

The Prime Minister commented on the situation regarding Lukoil’s investments in the oil infrastructure at Chișinău International Airport, noting that since international sanctions were imposed on the Lukoil group, additional problems have emerged in complying with contracts and legal requirements, CE Report quotes MOLDPRES.

“Lukoil took over the airport infrastructure in 2005 and assumed certain investment responsibilities. According to the analysis of the Ministry of Energy, the company did not fully comply with the investment program it committed to. What exactly was violated will likely be contested by Lukoil, and the legislation does not provide for compensation in this case,” Munteanu told Moldova1 television.

According to the Prime Minister, the court will determine whether the failure to meet investment commitments has criminal or administrative implications.

“It is the responsibility of the Prosecutor’s Office and the courts to investigate what happened. We will analyze the timeline and available evidence in order to make the right decisions,” Munteanu added.

Lukoil operates both the airport fuel infrastructure and a network of gas stations and the wholesale fuel market, making it a major player on the domestic market. The Prime Minister noted that since international sanctions were imposed on the Lukoil group, additional difficulties have arisen in meeting contractual and legal obligations.

“Lukoil SRL Moldova informed us that it cannot meet all the conditions imposed by the sanctions. In this situation, the government must ensure compliance with laws and international rules, because the Republic of Moldova is a participant in the global market and must respect all its commitments,” the head of government explained.

Alexandru Munteanu also mentioned that the privatization price paid by Lukoil in 2005 was very low—around 10 million lei—an amount considered small for the strategic infrastructure at Chișinău Airport.

“This infrastructure was and remains a monopoly on the market. We are now evaluating what was respected and what was not, and how we can correct the situation in the interest of the state and citizens,” the Prime Minister stressed.

As reported by CE Report, the Prime Minister assured that the government will monitor the investigation process and the enforcement of the law, and that Lukoil will have the right to challenge any decision in court, in accordance with the law. At the same time, the authorities will take all necessary measures to protect the state’s interests and ensure the proper functioning of the strategic infrastructure at Chișinău International Airport.