Gazprom and Moldova sign 5-year gas agreement

MOSCOW, October 30 (Reuters) – Russian natural gas giant Gazprom and the Moldovan government announced on Friday that it had signed a new five-year contract for the supply of Russian gas.

“Gazprom and MoldovaGaz have extended a five-year Russian gas supply contract, effective November 1, 2021, on mutually beneficial terms,” ​​Gazprom said in a statement.

A breakthrough in the talks came after the previous gas contract expired at the end of September and the European Union accused Russia of using gas to intimidate the small former Soviet republic.

Deputy Prime Minister Andrei Spinu said on Saturday that Moldova would pay around $ 450 for 1,000 cubic meters of Russian gas in November.

“The price will fall in the future depending on the price of gas on the stock exchanges. Under current conditions, we will pay half the market price and less than what we paid in October,” Spinu wrote on his Facebook page . He said Gazprom accepted a price formula proposed by the Moldovan side.

The price Moldova will pay in November is higher than the $ 128.5 Belarus pays, but far lower than the current price at European hubs.

One of the key issues surrounding the negotiations that resulted in the new deal was Moldova’s debt for previous gas supplies, estimated by Russia at around $ 709 million.

Spinu said the Moldovan government and Gazprom agreed to audit the debt next year and negotiate a payment schedule.

Additional reporting by Alexander Tanas in Chisinau; written by Maria Tsvetkova and Maria Kiselyova; edited by Mark Heinrich

Our Standards: The Thomson Reuters Trust Principles.

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