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16 I Companies & Markets bne October 2019
The political context of the bank account dispute is particularly relevant.
The reforms pursued by the BNM over the last few years, resulting in the three largest banks being liquidated and three others having their non-transparent shareholders replaced, support the scenario of tighter regulations carried out in line with the country’s agreements with the IMF that require such tough steps.
However, the creation of new tensions at this moment is also in line with the policy of the opposition Democratic Party (PDM) that uses each and every opportunity to pit the two sides of the ruling coalition – the pro-EU ACUM block and pro-Russian Socialists – against each other.
Incidentally, Moldova’s central bank is headed by Octavian Armasu, a former member of the PDM’s last government that took a firm stance against Russia and Transnistria’s claims for independence.
Armasu was minister of finance in the cabinet of Pavel Filip, backed by the PDM which was headed at that time by oligarch Vlad Plahotniuc. The PDM government closely cooperated with Ukraine in order to diminish the power of the pro- Russian authorities in Tiraspol.
The reasons for the action against Transnistrian companies might also include economic ones: the new regime in Transnistria has reportedly put an end to profitable joint businesses carried out by politicians in Chisinau and Tiraspol.
Now, President Igor Dodon is gradually taking control over the foreign policy and military areas (to the benefit of Russia), but the broad picture remains complex: while Transnistria
insists it deserves independence, Dodon has seemingly agreed with the Russian authorities that the best option would be
to give the territory a high degree of independence as part of a federal state of Moldova.
Alexei Melnik of Transnistria’s central bank claimed that the separatist territory has been under certain restrictions for all the years of its existence.
“The BNM has been trying all the time to somehow limit the activities of Transnistrian banks. In 2002, in fact, commercial banks of Transnistria were ousted from the financial market of the Republic of Moldova. The BNM has repeatedly sent letters to the Bank of Russia with a request to help ensure that commercial banks of the Russian Federation, which have correspondent relations with Transnistrian banks, terminate these relations,” Melnik said.
But the most powerful blow to the Transnistrian banking system was the publication by the US Federal Treasury in 2011 of a document urging US banks to exercise caution when making payments involving financial institutions of Transnistria.
“In practice, getting on the Financial Crimes Enforcement Network (FinCEN) list means that all operations with the US dollar of our commercial banks fall under close scrutiny and some restrictions. This affects the timing of operations, the delay, and sometimes the refusal to conduct operations,” Melnik explained.
After that, the only way out of the situation for Transnistrian companies was to open accounts in banks in Moldova, as recommended by international mediators in the negotiations on the Moldova-Transnistria settlement.
KPMG says Moldovan investor falsified financial statements to claim $500mn from Kazakhstan
Iulian Ernst in Bucharest
KPMG has withdrawn its reports used in the lawsuits launched by companies controlled by Moldovan businessman Anatol Stati because they were based on “ knowingly false representations by Stati to KPMG”, Kazakhstan’s justice ministry announced on August 27.
This might completely change the outcome of the $500mn legal battle between Stati’s company Ascom and Kazakhstan, which the former has won so far in several different
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jurisdictions, resulting in the attachment of Kazakh state properties.
Under a 2013 decision by the Energy Charter Treaty tribunal, Kazakhstan is required to compensate Ascom for the unlawful nationalisation of oil and gas fields and liquefied petroleum gas (LPG) assets. Ascom claims it was not compensated at a fair price for the properties nationalised. However, the Kazakh authorities have denied the allegations and refused to pay