Moldovan Parliament supports allocation of funds to pay debt to Gazprom

The Moldovan Parliament voted to amend the Law on the State Budget for 2021 and allocate 1.4 billion lei ($75 million) to pay off the debt for gas supplied by Gazprom, Point reports.

The document was adopted urgently due to the need to allocate funds to pay current payments to Gazprom for gas supplied to Moldova from October to November.

The Minister of Finance of Moldova Dmytro Budyanskyi explained that the money would be transferred to the state-owned enterprise Energocom.

“1.4 billion lei will be transferred to increase the social capital of the state-owned company Energocom. After receiving the money, Energocom will buy back a part of Termoelectrica's debt (to Moldovagaz) from Moldovagaz. Energocom will repay the debt, and Moldovagaz will pay for gas supplies. This will allow both to reduce Termoelectrica's debts to Moldovagaz, and to solve the problem with current payments for the supplied gas,” he said.

To recap:

On November 22, the Russian company Gazprom notified Moldova of the possible termination of gas supplies in 48 hours due to the lack of payment under the current contract. But Moldova hasn't settled with Gazprom yet.

On November 24, Moldova got a delay in payment from Gazprom. The country pledged to fully repay its debt to the company on November 26.

Read also: Suspension of gas supplies to Moldova: is there a threat to Ukraine.

Tags: Gazprom, contracts, tariffs, RF, debt, heating season, Gas market, negotiations, pipeline, price, gas supplies, crisis, Europe

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