21.Jan .2022 17:00

Moldovagaz announces paying off Gazprom debt for current supplies

Moldovagaz announces paying off Gazprom debt for current supplies
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Moldova's gas distribution company Moldovagaz has paid its current debt to Russian Gazprom after being warned of the possibility of its gas supply being cut off, the press service of the company said in a statement.

"Moldovagaz has fully transferred the payment for natural gas delivered in the first half of January 2022 to Gazprom," the statement said, TASS reports. 

The transfer amounted to $34 bln, the press service added. "This is the final tranche of the $63 mln that had to be paid for this period," the company said.

Moldovagaz Executive Board Chairman Vadim Cheba thanked the republic’s government for its financial assistance. Earlier in the day, a state of emergency was introduced for 60 days in Moldova after Gazprom notified Moldovagaz about suspending the gas supply starting January 21 due to the Moldovan side’s failure to fulfill its financial obligations.

Gazprom and Moldovagaz extended the gas supply contract for five years last October. The agreement included an important provision to pay for gas consumed in the previous month, as well as half of the volume consumed this month, by the 20th day of each month. Last November the republic was also late with its payments and received a notification from Gazprom on the possible suspension of gas supplies within 48 hours. The republic’s government at the time allocated the shortfall.

The company’s head explained that it faced financial difficulties in January due to tariffs in the country not being adjusted in line with prices. In particular, the purchasing price of the Russian gas for Moldova rose to $647 per 1,000 cubic meters in January, whereas in the tariff the price was set at $430.