Moldova to get 3 billion m3 of gas per year under new deal with Russia | Oil and Gas News

The deal follows a protracted dispute after Russian company Gazprom offered a massive price hike.

Moldova will receive around three billion cubic meters (m3) of gas per year under a new contract with Russian state gas company Gazprom, the country’s deputy prime minister said.

Andrei Spinu’s announcement on Monday came after Gazprom and the Moldovan government on Friday signed a new five-year contract for the supply of Russian gas.

The previous contract expired at the end of September and efforts to secure a renewed deal initially failed when Gazprom offered a significant price increase. Moldova, one of the poorest countries in Europe, refused to pay the increased rate.

Russia responded by threatening to cut supplies, citing unpaid bills, in what the European Union and allies of Moldova’s pro-Western government have denounced as political blackmail.

The Kremlin has denied that the Russian company is using the gas negotiations to try to get political concessions.

Spinu said Moldova and Russia must sign two key deals, including an agreement on Moldova’s old gas debts estimated at around $ 709 million and another on cooperation in the energy sector, or the contract. recently signed gas could be canceled.

He said the two agreements are expected to be signed in 2022.

“If a mutual understanding is not reached between the parties, it will lead to the breaking and cancellation of the agreement signed on October 29,” Spinu said at a press conference.

He said Moldova would pay around $ 450 for 1,000 cubic meters of Russian gas in November, and the price could drop to around $ 400 in December.

Moldova said last week that Gazprom initially asked for $ 790 for 1,000 cubic meters of gas, up from around $ 250 under the contract which expired in September.

Russia had supplied all of Moldova’s natural gas until the conflict broke out, but the fallout prompted Chisinau to declare a state of emergency, as well as to turn to Polish and Ukrainian suppliers amid the crisis. ‘a supply shortage which has forced industries to reduce their production to conserve gas for households.

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