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The leaked documents, which are being examined by the international FinCEN Files investigation, revealed Orlen Lietuva’s relationship with Sheriff Corporation. According to experts, this corporation, created by two former KGB employees, effectively controls the political and economic life of Transnistria.
The sheriff loses his life due to smuggling: he supplies goods to Moldova and other countries at reduced prices under the specific conditions of Transnistria. The fuel is also mentioned among the smuggling flows from Transnistria. They were transported to separatist territory for a long time without any control by the Moldovan authorities or, even more, without collection of taxes. In addition, the cheapest fuel from Transnistria allegedly flooded the black market in Moldova.
Orlen Lietuva does not deny negotiating with the Sheriff. However, a company controlled by the Polish company PKN Orlen refuses to reveal the amount of fuel that it has sold to the Transnistria corporation. It is also silent how many years the trade took place between the largest Lithuanian company and the Transnistrian oligarchs.
Smugglers’ paradise
On Monday, Siena released information about Orlen Lietuva’s business relationships with Sheriff Corporation. It is the largest business in Transnistria, established by two former KGB officials and titled the de facto ruler of the breakaway region. According to Moldovan experts, the sheriff’s corporation is also involved in large-scale smuggling.
The smuggling business flourished in a decades-long hole on the Ukraine-Moldavian border, where the border was effectively controlled by Transnistrian separatists, and the Moldovan side had no ability to inspect cargo or collect import duties. In this way, Transnistria imported far more goods than the region needed. These products, much cheaper than in Moldova or other neighboring countries, sailed on the black market of rivers.
Sheriff’s Corporation
© Company photo
Smuggling from Transnistria is one of the reasons why Moldova is one of the poorest countries in Europe.
Leaked bank reports of suspicious transactions reveal that Orlen Lietuva negotiated with the Sheriff. Only 4.4 million are mentioned in the leaked documents. The Sheriff lists the largest Lithuanian company among its most important suppliers.
Millions of discrepancies – no comment
An additional enigma in the Lithuanian-Moldovan oil trade is the impressive discrepancies in the statistics reported by both countries.
Orlen Lietuva told Sienai in 2011-2019. exported 164.5 thousand tons to Moldova. tons of gasoline and diesel, that’s almost 99 percent. Lithuania’s official exports listed in the United Nations UN Comtrade international trade database. However, the volumes of fuel imports from Lithuania reported by Moldova are several times lower. In particular, the differences in ocular hunger in 2013-2017. period.
“If you know that the main importer from Mažeikiai to Moldova was the Sheriff, I immediately say that the difference between the volumes declared by Moldova and Lithuania is in Transnistria,” Viktor Parlikov, former head of the Moldovan Energy Regulatory Agency, told Siena.
In dollar terms, the discrepancy between the data reported by Lithuania and Moldova amounts to about 94 million. dollars We asked Orlen Lietuva how the company could explain such large differences.
“We are sorry, but we are unable to comment on the statistics provided by the Republic of Moldova,” the company said in a written comment.
Lithuania’s fuel exports to Moldova fell dramatically after 2017. Ukraine and Moldova then began to introduce joint controls on the Ukraine-Transnistria border. Orlen Lietuva claims that exports fell due to increased demand for fuel in Poland.
Taxes for Moldova are not Orlen Lietuva’s business
We asked how much of Orlen Lietuva’s exports to the territory of Moldova took place through the border section between Moldova and Ukraine controlled by Transnistrian separatists. The refinery confirmed that all cargo exports to Moldova were through Ukraine, but did not specify specific border sections.
“All fuels destined for customers registered in the Republic of Moldova have been sold / transferred ownership to the border between Belarus and Ukraine”, – says Orlen Lietuva.
The company does not assess the possible transport of Lithuanian fuel to Transnistria, without going through the Moldovan customs system, that the payment of such taxes is not its responsibility.
“The ownership of petroleum products sold in the territories of the countries of the former Soviet Union is transferred at the border and the customer is responsible for all import formalities and proper declaration. This also includes, among others, the payment of duties. customs duties, excise duties, VAT and other taxes in the country where the oil products will be sold or put into circulation, ”the company said in a comment.
Sheriff’s trade is not meant to be detailed
We also asked some questions about the relationship between Orlen Lietuva and the Sheriff. We asked when the Mazeikiai company started trading with the Transnistria corporation, what part of the official exports to Moldova was fuel sold by the Sheriff. Furthermore, we asked you to indicate whether the transactions with the Transnistrian corporation were evaluated for possible reputational risks and whether the contracts were concluded with the approval of the Polish company PKN Orlen.
Orlen Lietuva decided to leave all these questions unanswered. Orlen Lietuva does not comment on commercial transactions and / or their details, including but not limited to customer data, ”the company said in a comment.
We remind you that not only Orlen Lietuva negotiated with the Sheriff. Leaked FinCEN Files documents show that at least 1.7 million Transis trading house run by famous businessman Kęstutis Verslov also received Sheriff dollars. K. Verslov states that paying customs duties is not the responsibility of his company. Read the full investigation into K. Verslov’s relationship with the Sheriff here.
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