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Energy crisis in Europe

Moldovagaz to transfer $8.5 mln to Gazprom on Thursday to repay debt — Deputy PM

Deputy Prime Minister Andrei Spinu noted that the government is doing its best to prevent the interruption of gas supply to the consumers

CHISINAU, January 20. /TASS/. Gas distribution company Molovagaz will transfer $8.5 million to Gazprom on Thursday to pay off the debt for the advance payment in January, Deputy Prime Minister Andrei Spinu said in the parliament.

On Thursday, the parliament was considering the government's request to introduce the state of emergency in the energy sector for 60 days due to the gas crisis.

"Yesterday, Moldovagaz transferred $7 million, today it will pay another $8.5 million. In total, more than $38 million will be paid on account of the advance payment for January, we will have to pay another $25 million to fully pay off the debt," Spinu said.

He noted that the government is doing its best to prevent the interruption of gas supply to the consumers and asked Gazprom to grant a deferral on the January debt.

"However, Gazprom did not agree to grant a deferment that would allow us to pay off in a few days, although they were ready to do this before. We regard this as an unfriendly step on their part against Moldovagaz, where the Russian company is the majority shareholder," he stressed.

In October, Moldovagaz and Gazprom extended the contract for the supply of gas for five years. There is an important clause that states that by the 20th day of each month Moldova is obliged to pay the cost of gas consumed in the previous month, as well as half of the volume consumed in the current month.

In November, Moldovagaz was late with payments and received a notification about the possible suspension of gas supplies in 48 hours. Back then, the government allocated about $75 million for settlements with Gazprom.

Earlier this month, Moldovagaz Executive Board Chairman Vadim Cheban said that the company would not be able to square accounts with Gazprom for the current gas consumption in January and avoid the suspension of gas supplies. He pinned the financial difficulties on the tariffs, as they were not keeping up with the increased price of imported gas in January.

The price of Russian gas for Moldova in January has climbed from $550 to $647 per 1,000 cubic meters. The approved tariff rate is $430.

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Energy crisis in Europe

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