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Russia to sell gas to Moldova at price of $173 in 2020

Following the results of Russian-Moldovan talks, Deputy Prime Minister Dmitry Kozak said that at the negotiations the republic’s gas debt to Russia was discussed

MOSCOW, November 20. /TASS/. The price of Russian gas for Moldova will be significantly lower due to changes in the contract price formula - $173 per 1,000 cubic meters, Deputy Prime Minister Dmitry Kozak told reporters following the results of Russian-Moldovan talks.

"We didn’t have to give them a very big discount, because the current price formula itself makes it possible to provide a significant discount. I don’t mind telling you that from the new year the gas price for Moldova will be $173 per 1,000 cubic meters. This is under the current contract," the Russian Deputy Prime Minister added.

He also said that at the negotiations the republic’s gas debt to Russia was discussed.

"It was. We agreed that we will extend the contract under the existing conditions. It will be beneficial for the republic of Moldova next year in terms of gas prices," Kozak said.

According to him, the Russian government discussed the debt repayment with the local Gazprom (MOEX: GAZP). The mechanism of debt repayment implies that the reduced gas price will be paid with some supplementary amounts and this will allow Moldova to gradually return the debts.

Earlier, the republic’s leadership announced that it had reached an agreement on a discount in gas prices from Gazprom since October 2019.

"It works. Such an agreement is valid," Kozak confirmed.

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