“The days of Shor’s shops at the airport are numbered”, said Dumitru Alaiba, Minister of Economic Development and Digitisation, on Monday 29 August. The official said that Chisinau International Airport will “soon” announce a tender for “selecting a credible operator” in the retail sector.

On the other hand, representatives of the DFM SRL company, which manages Duty Free shops in Moldova, claim that “this case represents a blatant interference of the state in a private business”.

Minister Dumitru Alaiba said that although the authorities cancelled the duty-free regime in autumn 2023, “the shops controlled by Shor still operate at the airport, paying all taxes and duties”.

“For now. We will also eliminate this latest scheme benefiting this criminal group. Instead we will transparently identify a credible investor with extensive experience in the field, with an impeccable image and reputation. To bring transparency and efficiency to the management of the Airport shops.

One by one we will put an end to all the corrupt schemes that have been put in place by corrupt groups, including those associated with Shor and others. And those who profited from corruption will be brought to justice.

All of Shor’s “businesses” have the same end – they lie to people, cheat them, take their money and disappear. That’s what he did with the Savings Bank (Banca de Economii), that’s what he did with Air Moldova and many others. We won’t expect the same thing to happen with the airport shops,” Alaiba wrote on social media.

In response, DFM SRL said it is “managed and controlled” by foreign investors, who are included in the state register.

“The company has no connection with politicians or political parties, both in Moldova and abroad. Moreover, the company is not politically affiliated and has never been, unlike your post, in which one can glimpse with the naked eye an undisguised political struggle or, more precisely, railing against the opponent, with the help of service status (…)

It is unacceptable to hear from the mouth of the Minister of Economy that the company “pays all taxes and duties” but its activity is a “scheme”!

Our company operates in full compliance with the law (dozens of inspections by all possible government agencies in recent years have confirmed this), provides about 300 jobs (some of them in the districts) and is a large taxpayer,” the company’s public reaction reads.

At the same time, the company’s representatives mention that they have expressed interest in extending the lease of the airfield space.

“We have informed the state-owned AIC and the Public Property Agency about our intention to extend the lease of the terminal space for a longer period, justifying the advantages of concluding the contract with our company. In response, the Public Property Agency recommended the organization of a public “open” tender, which provides for obtaining the maximum price for the Airport and is the only legal way of renting space, i.e. the main criterion is the price to be obtained by the Airport following a transparent tender. At the same time, it should be noted that even under the current contract the company pays a significant amount, which is visibly reflected on the airport’s revenues,” the DFM limited liability company also notes.

The company is currently owned by Israeli citizen Arie Geler (90%) and Andrii Minaiev (10%), the latter being a German citizen and a director of the LLC.

The duty-free shop network, controlled by Ilan Shor, was among the first assets seized by law enforcement officials in June 2019, immediately after the former mayor of Orhei fled the country. But the ban lasted only half a year. After it was lifted, the duty-free network’s documented owners migrated several times, from local businessmen to Cypriots, Germans and Jews.

Eventually, the duty-free business was taken over by the owner of a Russian bank domiciled in Israel, in the same city where Ilan Shor was repeatedly caught, RISE Moldova wrote.

The draft law to abolish the duty-free regime in Moldova was approved in the second reading in early November 2022. Thus, the sale of goods in commercial establishments in customs zones was to be taxed “based on the principle of tax fairness for all entrepreneurs in Moldova,” according to the legislature.