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Moldova’s government will help Moldovagaz to settle accounts with Gazprom — PM

Moldovagaz and Gazprom renewed the gas supply contract for five years last October

CHISINAU, January 19. /TASS/. The government of Moldova will help Moldovagaz, the country’s gas distribution company, to make payments to Gazprom and avoid termination of gas supplies, Prime Minister of Moldova Natalia Gavrilita said at the briefing on Wednesday.

"The payment of value-added tax [by Moldovagaz] will be deferred. The government will also make the advance payment of gas compensations for households. These two measures are to cover the deficient amount requested by Gazprom," she said, commenting on the government’s decision to request the parliament to introduce the state of emergency for extra measures in view of the debt to the Russian company.

The parliament will hold an extraordinary meeting to approve the government’s request on Thursday, the Prime Minister said. Authorities will be in time to transfer money and avoid termination of gas supplies from January 21, she added.

Moldovagaz and Gazprom renewed the gas supply contract for five years last October. An important provision of the contract is the agreement to pay the price of gas consumed last month by the 20th day of each month and a half of the volume consumed in the current month. Moldova failed to make the payment due last November and got the notice from Gazprom on the possible termination of gas supplies in 48 hours. The republican government allocated the required money at that time.

In January 2022, the CEO of Moldovagaz Vadim Ceban said the company again faced financial difficulties due to the untimely adjustment of tariffs in the country. The company is short of about $25 mln to settle liabilities by January 20.

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