Moldova is heavily dependent on Russian gas and has been hit hard by rising gas prices
THE Moldova fears that the Russian gas company Gazprom may reduce or cut off the country’s natural gas supply from October 1 and is looking at alternative energy sources, it said today the president Maya Sandu.
One of Europe’s poorest countries, Moldova is heavily dependent on Russian gas and has been hit hard by rising gas prices following Russia’s invasion of Ukraine.
“We have no confidence that Gazprom will continue to supply natural gas to Moldova after October 1. From that date, the price for Moldova under the current contract should be significantly lower,” pro-Western President Sandu said.
“In case of reduction or interruption of supplies, we are considering the possibility of sourcing energy resources from alternative sources,” he said.
Sandu did not say why Gazprom might reduce or stop the supply. State-controlled Gazprom, which has cut gas supplies to Europe since Russia invaded Ukraine in February, did not immediately comment on the Moldovan president’s remarks.
Moldova has previously said that Gazprom could cut off gas supplies if one of the terms of the contract is not met – completing an audit of its accumulated supply debt estimated at $709 million.
The price of natural gas in Moldova varies from month to month based on the spot price for natural gas and oil. But from October 1, the formula used to calculate the price will change.
Currently, the gas price formula is 70% based on the spot price of natural gas, which is very high, and 30% on the price of oil. From October 1, the formula will change to 70% based on the price of oil and 30% on the spot price of natural gas.
The state gas company Moldovagaz has paid for gas deliveries from Gazprom for August, but a senior source at the company told Reuters it is struggling to pay its 50 percent advance payment for September of $33.89 million.
Thousands of protesters have gathered in Chisinau over the past two weekends, calling for the resignation of Sandu and her government and protesting high inflation and fuel prices.
Meanwhile today, a security aide to President Sandu stressed that Moldova can no longer rely only on its neutrality status and must strengthen its defense military power.
The ex-Soviet state, one of the poorest countries in Europe, allocated just over 1 billion leu – or 0.45% of GDP – to defense spending this year.
The country applied to join the European Union this year and strongly condemned Russia’s invasion of Ukraine, but Russian troops and peacekeepers are based in the breakaway region of Transnistria. Moldova relies heavily on Russian energy.
“Moldova can no longer rely solely on foreign policy tools, one of which is its neutrality status, to ensure the stability of the state,” said Dorin Rechan, the president’s assistant on security issues.
“Moldova must start working on increasing its defense potential…The authorities must get the conscious support of the citizens who should understand that it is critical for the survival of the state,” he said, calling for funds to this purpose.
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