CHISINAU, January 12. /TASS/. The gas distribution company Moldovagaz informed the Moldovan government about financial difficulties and a new threat of suspension of gas supplies by Gazprom due to the failure of the Moldovan side to fulfill its financial obligations, the government’s press service reported on Wednesday.
According to the press service, this issue was discussed at a meeting of the government’s Commission for Emergency Situations on Tuesday.
"Moldovagaz informed the commission that the supplier will no longer tolerate negative financial deviations and there is a real risk of termination of natural gas supplies if payments are not made in accordance with the contractual terms," the statement says.
It also says that Moldovagaz has repeatedly encountered financial difficulties due to the fact that tariffs do not match with the increased price of imported gas in January.
In this situation, the authorities recommended that state institutions reduce gas consumption. Moldovagaz asked Gazprom to consider the possibility of deferred payment.
In addition, the Finance Ministry will study the possibility of tax holidays for Moldovagaz, and the company will consider the possibility of obtaining a commercial loan.
Situation in Moldova
In October, Moldovagaz and Gazprom extended the contract for the supply of gas for five years. The gas price formula for the republic takes into account the ratio of market prices for gas and oil. In accordance with the new contract, in November the gas price for Moldova was $450 per 1,000 cubic meters. There is an important clause which implies 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.
On Tuesday, the country’s Deputy Prime Minister, Minister of Infrastructure and Regional Development Andrey Spinu said that he has asked Gazprom CEO Alexey Miller to consider the possibility of postponing the payment of this advance by 10-20 days so that Moldovagaz could accumulate funds.
Spinu also said that by the end of this week Moldovagaz will pay for the gas received in December last year. However, he presented forecasts showing that the company will lack about 25 million euros to fulfill its financial obligations on deliveries this month by January 20.