CHISINAU, December 27. /TASS/. Igor Dodon, a former Moldovan president, on Tuesday said the country missed its chance to get a better price for natural gas supplies from Gazprom.
"There was a chance to agree with Gazprom to conclude a long-term contract at a fixed price that would have been beneficial for our economy and consumers. The price could have been somewhere between $250-$300 per 1,000 square cubic meters, which is several times cheaper than what we are now paying in spot markets," Dodon, who is now heading the Moldovan-Russian Business Union, told TASS.
He said prices in these markets used to be lower, but now they have jumped.
"Everyone who is utilizing the four-year-old model has fallen into the Europeans’ trap.. Although some countries on the continent have escaped it by getting fixed prices in their contracts with Gazprom. They are now getting gas at beneficial prices," Dodon said.
Moldovagaz and Gazprom extended their gas supply contract for another five years in October. The contract has a modified formula to determine the purchasing price, now taking into account the current spot market situation in European countries. Chisinau assumed that would help it cut costs but the market situation has changed drastically, causing prices for Moldovans to rise almost sevenfold since last year.
As one of its main conditions, the contract required the payment of debt and timely future payments. However, as gas prices soared and the government sought to keep rates for consumers low, Moldovagaz delayed payments to Gazprom a few times, receiving warnings. The government intervened and introduced a nationwide emergency.