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Home THE INSIDER

Gazprom threatened to cut off gas supplies to Moldova if the country does not pay off the debt and does not agree on the terms of the new contract

by novichoktimes
October 23, 2021
in THE INSIDER
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The company “Gazprom” will completely stop gas supplies to Moldova from December 1, if the country does not pay off the debt for fuel and does not agree on the terms of a new contract. About it informs RIA Novosti with reference to the statement of the official representative of Gazprom Sergei Kupriyanov.

“At present, the body of the debt is $ 433 million, and taking into account the delay in payments, the total amount of debt is $ 709 million,” the agency quoted Kupriyanov as saying. He stressed that the representatives of Moldova “for some reason do not want to recognize the accumulated amount of debt” and are dissatisfied with the price of gas.

Kupriyanov added that Gazprom is ready to extend the contract for November if the Moldovan authorities fully pay off the accumulated debts for supplies in September and October 2021. According to the representative of “Gazprom”, further it is necessary to conclude a new agreement for the supply of gas.

October 22 due to gas shortage Moldovan authorities introduced the state of emergency in the republic, which will last until November 20. Earlier in Moldova, due to the energy crisis, there was introduced high alert mode. Prime Minister Natalia Gavrilica stressed that the introduction of the state of emergency is a technical solution, thanks to which the Moldovan authorities will be able to purchase the necessary volume of natural gas from alternative sources in the event of an emergency.

The crisis was caused by a sharp rise in fuel prices, as well as difficulties in negotiating a new long-term contract with Gazprom for the supply of gas. The contract between Russia and Moldova was signed in 2006 and subsequently extended several times. The current contract between Moldovagaz and Gazprom expired on September 30, and negotiations on its extension have not yet been completed. So far, the parties have agreed only on supplies for October. Moreover, Moldova will have to buy gas at a price of $ 790 per 1,000 cubic meters, while in September the price was $ 550 per 1,000 cubic meters.

“Gazprom’s gas price for Moldova is not in the interests of our citizens,” said Moldovan Deputy Prime Minister Andrei Spinu, who took part in the talks in Moscow. In a conversation with Reuters, a source familiar with the content of the negotiations said that Moldova had asked Gazprom to cut the price offer by half. Another source told the agency that the company has proposed a 25% cut.

Taking into account Transnistria, Moldova consumes on average 2.8 billion cubic meters of gas per year. The share of consumption of the right-bank part of Moldova is 1.1 billion cubic meters. The debt of Transnistria for natural gas has already exceeded $ 7 billion. Despite the payment for the gas consumed by industrial and household consumers, the regional authorities are accumulating this money in the so-called “gas account”. These funds cover the budget deficit of the self-proclaimed republic, the size of which reaches 45-50%.

Gas prices in Europe, Gazprom’s main export market, began to rise in April, and in autumn, amid the growing energy crisis, they reached record levels. On October 6, the cost of 1,000 cubic meters of gas exceeded $ 1,900.



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