The leadership of Gazprom and the Moldovan authorities have agreed to extend the contract for gas supplies to the republic for five years - the pumping of blue fuel will begin on November 1.

This was reported by the press service of the Russian company. 

"Following the talks concluded between the Chairman of the Board of Gazprom PJSC Alexei Miller, Deputy Prime Minister, Minister of Infrastructure and Regional Development of the Republic of Moldova Andrei Spinu and Chairman of the Board of JSC Moldovagaz Vadim Ceban, a protocol was signed to resolve current issues in the gas sector," in the press release.

Gazprom and Moldovagaz have extended the contract for the supply of Russian gas to Moldovan consumers from November 1, 2021 for a period of five years on mutually beneficial terms, ”the Russian company added.

In turn, representatives of the Ministry of Infrastructure of Moldova said that during the negotiations in St. Petersburg it was possible to agree on both the formula for calculating the gas price and the procedure for auditing the debt accumulated by the Moldovagaz company. 

Earlier, the press secretary of the President of the Russian Federation Dmitry Peskov noted that the Russian company is open to continue contacts and search for a mutually acceptable solution. 

“There is a debt of Moldova to Gazprom, the debt is very serious and growing.

There is an issue related to this debt, the issue of a new contract.

There is a seller, there is a buyer.

The terms of the contract must be agreed upon, ”said Peskov.

At the same time, he expressed the opinion that this situation does not in any way affect the reputation of Gazprom.

“Gazprom's image is great.

You have all heard and are aware of the statements made by European leaders, heads of counterparty companies, repeatedly voiced over the past few weeks, that Gazprom is precisely fulfilling all its obligations.

This has nothing to do with Gazprom's image, it is an absolutely commercial issue.

Gazprom cannot give gas and cannot forgive debts, it is a commercial company, ”Peskov emphasized.

Moldovan crisis

Recall that on October 22, the Moldovan parliament introduced a state of emergency in the country for a month due to the energy crisis caused by the gas shortage.

As part of these measures, funds were allocated and a special, accelerated regime was established for the purchase of the necessary volumes of fuel, and a package of decisions was adopted for prompt actions to provide energy.

A similar situation has arisen due to the fact that Chisinau and Gazprom did not come to an agreement on the next extension of the gas contract, which expired on September 30, 2021.

At the same time, earlier the contract was temporarily extended for a month.

  • Parliament building of Moldova

  • Reuters

  • © Gleb Garanich

After the temporary extension of the contract, Moldova imported Russian gas at a market price of about $ 790 per 1,000 cubic meters.

However, during the negotiations, Chisinau insisted on reducing the cost to $ 200- $ 300 per 1,000 cubic meters. 

Chisinau receives practically all Russian gas through the gas transportation system of Ukraine.

The annual demand of Moldova for this type of fuel is estimated at about 2.9 billion cubic meters, taking into account the supply of Transnistria.

Deputy Prime Ministers of the Moldovan Cabinet of Ministers Andrei Spinu and Vladislav Kulminsky met on October 21 in Moscow with the Deputy Head of the Presidential Administration of Russia Dmitry Kozak and representatives of Gazprom.

However, it was not possible to reach agreements on the contract then.

As reported by a TASS source close to the negotiations, the Russian side offered its partners a fair market price and an additional 25% discount.

In return, Moldova was required to return the accumulated debt only within three years.

“However, the Moldovan delegation, represented by two deputy prime ministers, Kulminsky and Spinu, citing the lack of the necessary funds, insisted on reducing the price by half the market price,” a TASS source said.

In turn, the official representative of "Gazprom" Sergei Kupriyanov said on October 23 that the total debt of Moldova for the fuel supplied by Russia is $ 709 million.

“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. At the same time, the representatives of Moldova, for some reason, do not want to recognize the accumulated amount of debt.

The representatives of Moldova also do not like the price of gas, although the pricing here is clear and transparent, ”he noted.

The company spokesman added that Gazprom is ready to extend the contract with Chisinau with full repayment of the debt, stressing that this situation has no political motives, since Gazprom cannot operate at a loss.

“There is no politics here.

Gazprom is a joint-stock company and cannot operate at a loss, cannot afford to lose tax payments to the RF budget, ”explained Kupriyanov.

In his opinion, the country's authorities are responsible for the current situation in the republic.

“We are talking about a crisis of non-payments on the part of Moldova for Russian gas,” stated a representative of the Russian gas company.

Alternative solutions

It is worth noting that during the negotiations of the republic’s representatives with Gazprom, the Moldovan authorities tried to find alternative sources of gas supplies to the country.

On October 25, it became known that the Moldovan side had entered into a contract for a trial purchase of 1 million cubic meters of gas from the Polish energy company PGNiG and the American-Ukrainian company Energy Resources of Ukraine (ERU).

In addition to PGNiG, the Dutch company Vitol won the tender for the supply of another 1 million cubic meters of gas.

In addition, NJSC Naftogaz of Ukraine also announced that it had won a tender for the supply of gas to the Moldovan state-owned company Energocom.

The press service of the company said that the transportation of 500 thousand cubic meters of gas began on October 29.

  • "Naftogaz of Ukraine"

  • globallookpress.com

  • © Jaap Arriens / ZUMAPRESS.com

According to the company, the contract for the supply of this consignment of fuel is formalized as an additional contract to the framework agreement between Naftogaz and Energocom.

The Ukrainian company stressed that they will continue to participate in tenders for the purchase of additional volumes of gas by the Moldovan side.

Commenting on the situation, Vladimir Shapovalov, deputy director of the Institute of History and Politics of the Moscow State Pedagogical University, noted that small contracts for gas supplies from Eastern Europe could not saturate Moldova to the same extent as fuel supplies from the Russian Federation.

He also stated that the most reasonable solution to the problem would be the resumption of Russian gas supplies.

“There is no alternative for Moldova, taking into account the geographical location and taking into account the economic situation in the country.

It is quite difficult to imagine a cheaper gas for Moldova than Russian gas, or the fact that non-existent Polish, Ukrainian gas will fill the country's reservoirs, ”the analyst said.

In turn, First Deputy Chairman of the State Duma Energy Committee Igor Ananskikh, in an interview with RT, said that mutually beneficial terms of the contract became the main thing in extending the agreement between Gazprom and the Moldovan side.

“Naturally, gas from Russia is the cheapest for Moldova.

I am glad that the Moldovan government did not follow the path of Ukraine and in order to make things worse for Russia (they didn’t. -

RT

) buy more expensive gas elsewhere, ”he stressed.

The parliamentarian added that Gazprom is a company that operates under market conditions.

“All contracts are discussed taking into account the mutual benefit for the company itself and all shareholders.

I am glad that the parties have found that golden mean that suits everyone, and that a contract has been signed for a long period, ”Ananskikh said.

At the same time, Deputy Director General for Gas Issues at the National Energy Security Fund Alexei Grivach, in a conversation with RT, emphasized that Moldovan consumers will benefit primarily from the extension of the contract. 

“This is very good news for the contracting parties, and especially for the residents of Moldova and Transnistria, who risked being left without heat and light this winter.

Gazprom had a strong position in the negotiations, but they did not twist Moldova's hands at all and agreed to audit debts in exchange for a five-year contract, prescribed regulations for auditing and payment of confirmed debts, "RT's interlocutor concluded.