Page 5 - FSUOGM Week 47 2021

FSUOGM COMMENTARY FSUOGM

Gazprom threatens to cut Moldova’s

gas off in 48 hours over unpaid bill

The Russian gas supplier only just entered into a new contract with Moldova

MOLDOVA RUSSIA’S national gas company Gaz- 1,000 cubic meters of gas delivered in Novem-
prom warned the Moldovan government on ber – roughly half the current spot market price
November 22 it would cut off gas supplies unless for the fuel in Europe, according to the nation’s
an overdue payment for gas under the terms of Deputy Prime Minister Andrey Spinu, who par-
its new contract was settled within 48 hours. ticipated in the talks, reports Bloomberg. The
WHAT: The payment was due on November 22 and parties also agreed that an audit of Moldova’s
Gazprom has threatened has not been made, according to Gazprom. outstanding debt for gas supplies will be done
to cut gas supplies to "The deadline for current payments is next year.
Moldova over an undebt November 22,” Gazprom spokesman Sergei The price of Moldova’s gas is due to reduce
debt. Kupryanov told Russian broadcaster NTV, as going forwards depending on the prices for gas
cited by RFE/RL. on the European spot market.
WHY: Kupryanov said Gazprom had “notified the "The price will decline going forward depend-
The deadline for paying Moldovan side that in 48 hours gas supplies to ing on the gas price on the exchanges. In current
the debt was November Moldova will be stopped in accordance with the conditions we will pay half the market price and
22. contract.” less than what we paid in October," Spinu wrote
“A significant and important” point in the on his Facebook page at the time the new deal
WHAT NEXT: gas-supply deal with Moldova was getting “100% was signed. He said Gazprom had accepted a
The two sides are working current payments for gas on time,” Kupriyanov price formula proposed by the Moldovan side.
to resolve the problem. added. “The next deadline for current payments One unresolved issue is the outstanding debt
was today, November 22. There has been no of $709mn for previous gas deliveries that Mol-
payment.” dova has built up with Gazprom under the old
Kupryanov said Gazprom had signed a con- deal. A repayment schedule is due to be worked
tract "practically on the terms of the Moldovan out in the New Year.
side", but stressed that one of the conditions was Tensions were raised further recently when
"that Moldova completes one percent of its pay- the Moldovan authorities started taking steps
ments on time." aimed at identifying possible frauds at Moldo-
He added that Gazprom was "extremely dis- vagaz. Such frauds have been frequently spot-
appointed with Moldova's failure to fulfil its con- ted by investigative media.
tractual obligations." In related news, the government in Chisinau
Moldovagaz head Vadim Ceban confirmed recently replaced its representative on the board
that Moldova’s state energy company received of Moldovagaz, saying that the company’s activ-
the Gazprom payment demand, saying the sum ity must be monitored more closely.
amounted to MDL1.3bn ($73.5mn).” Then, a couple of days before Gazprom’s
“We are actively working with the govern- 48-hour deadline, the speaker of the Moldo-
ment to solve the problem by the deadline van parliament Igor Grosu announced that an
stipulated in the notification. I hope that we audit will be carried out on the accounts of Mol-
will manage to solve this problem," Ceban told dovagaz and on the way the company spends
Reuters. money. A law is being drafted and will be enacted
Moldova declared an emergency in Septem- by the end of the year to give the Court of
ber after its long-term contract with Gazprom Accounts full rights in this regard, Grosu stated.
expired without a new deal being put in place. The move had been announced in advance by
Gazprom reduced deliveries to the small repub- President Maia Sandu.
lic by more than half causing an energy crisis, but The Moldovan authorities also announced an
extended the contract temporarily for month investigation aimed at establishing why Moldo-
while talks on a new contract continued. vagaz had not acted in advance to prevent the
A new five year contract was signed and went natural gas supply disruptions in October when
into effect on November 1 under the terms of the government had to find ways to fill the gap
which Moldova was set to pay about $450 per at short notice and therefore at a high price. ™

Week 47 24•November•2021 www. NEWSBASE .com P5