Saturday 23 October 2021
No exports from December?
Russia threatens Moldova with a gas delivery freeze
In the middle of the heating season, the ex-Soviet republic of Moldova runs the risk of Russia turning off the gas. According to Gazprom, the country has accumulated a total of more than 700 million US dollars in debt. The energy company emphasizes that Moldova is provoking the crisis itself.
The Russian energy company Gazprom is threatening the ex-Soviet Republic of Moldova with turning off the gas because of unpaid bills. Debts of 433 million US dollars (around 372 million euros) had accrued; however, the outstanding balance has now amounted to US $ 709 million due to fines for unpaid bills. Gazprom spokesman Sergei Kupriyanov announced this to the Tass state agency. “The representatives of Moldova – for whatever reason – do not want to recognize this accumulated debt.”
The government in the completely impoverished neighboring country of EU member Romania has declared a state of emergency because of a gas deficit. According to the Gazprom spokesman, Moldova will no longer receive gas from Russia from December 1 if the contract, which expired in September, is not extended by then.
The gas giant says it wants to comply with a request from the Moldovan government to continue deliveries in October and November. In return, the country has to pay the bills for September and October first. The prerequisite for a new contract, in turn, is the settlement of all debts, said Kupriyanov. This is not about politics.
Ukraine offered help to the neighboring country
Rather, the stock corporation listed on international stock exchanges could not afford any losses. “There are limits to patience. Moldova is provoking the crisis itself. You have to pay for goods received in good time,” the Gazprom spokesman emphasized. Last year, Moldova purchased gas from Russia for US $ 148.87 per 1,000 cubic meters – under a then-Moscow-friendly government. Currently, after a change of power, the pro-western oriented country has to pay 790 US dollars per 1000 cubic meters, mainly because of the rise in energy prices.
Russia is repeatedly criticized for setting prices based on a country’s political devotion. Belarus, for example, has just negotiated a friendship price of US $ 128.5 per 1,000 cubic meters for 2022. Moldova recently asked Russia for a price cut and is hoping for between 200 and 300 US dollars per 1,000 cubic meters of gas. In return, according to Russian sources, the country offered to pay its debts and lift restrictions on Gazprom’s investments. Ukraine recently offered help to its neighboring country.