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Moldova Preliminarily Agrees to Repay Debt to Gazprom by 2027

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BM.GE
02.11.21 22:00
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Moldova has preliminarily agreed to repay the debt of consumers on the right bank of Dnister River for the Russian gas by 2027, according to the protocol of negotiations with Gazprom posted by the republic’s infrastructure ministry on its Facebook page.
 
"Moldovagaz and Gazprom will sign the agreement on settlement of debts of Moldovagaz to Gazprom and Factoring Finance for gas supplied to consumers on the right bank of Dnister River, which stipulates the repayment of all debts including fines in five years, by May 1, 2022," the document said, TASS reports. 
 
The Moldovan side is set to complete the audit of its debts to Gazprom by May 2022 after the debt repayment talks, the republic’s Deputy Prime Minister, Minister of Infrastructure and Regional Development Andrei Spinu told a press conference on Monday following the talks with the management of the Russian gas holding. "Moldova should complete the independent audit of its debt before the signing of this agreement," he said, adding that the debt amount announced earlier was not fixed in the agreement.
 
Moldova and Gazprom have also agreed not to apply sanctions against the Russian-Moldovan gas transport company Moldovagaz, which accumulates debts of Moldovan consumers to the Russian gas holding, Spinu said. "We agreed that an agreement in the energy area will be signed by the end of 2022 that will keep the status of Moldovagaz, as well as on non-application of certain sanctions or forced reorganization of Moldovagaz before the issue of Moldovagaz debts to Gazprom for gas supplied to consumers on the right bank of Dnister River is settled," he said.

Moldova and Russia will hold a meeting of the intergovernmental commission where they will discuss energy issues, Deputy Prime Minister said. "A meeting of the Moldovan-Russian intergovernmental commission will be held to discuss all aspects in the energy area in November 2021. It is planned to sign an agreement between the governments of Moldova and Russia in the energy area by the end of 2022," he said.
 
Heads of Gazprom and Moldova agreed the terms of the gas supply contract, as well as the country’s debt repayment structure, on October 29. According to Gazprom, the contract starting November 1, 2021, was extended by five years. Gazprom spokesman Sergey Kupriyanov said earlier that the Moldova’s debt to the company currently stands at $433 mln, or $709 mln considering overdue payments.