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Moldova will continue talks on new gas supply contract with Gazprom on Friday

According to the head of the Moldova's delegation, "the Moldovan side wants to sign a gas supply contract similar to the one used in recent years"

CHISINAU, October 29. /TASS/. The delegation of Moldovan government will continue talks on the terms of a new contract for the supply of Russian gas on Friday, head of the delegation, Deputy Prime Minister, Minister of Infrastructure and Regional Development Andrey Spinu announced.

The negotiations began in St. Petersburg two days ago.

"The negotiations, which have been going on for the third day, will continue today," Spinu wrote on Facebook.

According to him, "the Moldovan side wants to sign a gas supply contract similar to the one used in recent years."

"As for the amount of debt accumulated by Moldovagaz, the Moldovan government believes that this issue can only be agreed upon after an audit. The discussions are constructive, and both sides are making great efforts to find a point of intersection of interests," Spinu said.

Situation with gas supplies to Moldova

In 2020, Gazprom delivered 3.05 bln cubic meters of gas to Moldova, which is 5.5% more than in 2019 (2.89 bln cubic meters). Currently, Moldova is experiencing a gas shortage, as the contract with Gazprom expired at the end of September. The republic's negotiations on a long-term contract with Gazprom are continuing.

The Russian gas giant is asking Moldova to pay off its $709-mln debt. Chisinau was offered an option to defer payment of what it owes. Gazprom is also ready to provide a 25% discount on gas, but Moldova is not yet ready to take advantage of this.

During the negotiations, the parties extended the current gas supply agreement until the end of October. This month, Moldova is importing gas at a market price of about $790 per 1,000 cubic meters. Chisinau is seeking to lower the cost of gas to an average of $200-300 per 1,000 cubic meters. Last year, the country paid an average of $148 for the same volume. Gazprom is ready to prolong the contract for November if Moldova pays in full for the September and October supplies. At present, some of Moldova’s enterprises have switched to fuel oil, and a state of emergency has been introduced in the country. The former Soviet state has begun to look for alternative gas supplier.