Moldova intends to challenge the decision of “Gazprom” in the event of a cessation of supplies

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CHISINAU, October 19 – RIA Novosti. Moldova intends to challenge Gazprom’s decision in court if the Russian company stops its natural gas supplies to the country, Moldovan Prime Minister Natalia Gavrilitsa said.
In October last year, the Moldovan authorities agreed with Gazprom to extend the contract for the supply of gas to the republic, subject to an audit of the Moldovagaz debt in 2022. Gazprom said that it reserves the right to completely stop gas supplies to Moldova if the country violates payment obligations by October 20, and also because of a gross violation of the deadlines for concluding an agreement to settle the historical debt of JSC Moldovagaz.

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“If natural gas supplies are cut off, then we must understand that the shutdown will occur for political, not commercial reasons, and we, of course, will challenge in court if this happens,” Gavrilitsa said on the air of the private Chisinau TV channel Jurnal TV.
The Moldovan authorities will allocate a loan to Moldovagaz secured by the country’s gas transportation system, Deputy Prime Minister, Minister of Infrastructure Andrei Spinu said earlier on Wednesday. This decision, according to him, will allow “Moldovagaz” to fully pay “Gazprom” gas consumption for September and an advance payment for October and prevent the risks of cutting off supplies.
Spinu noted that the state enterprise Energocom will sign a loan agreement with Moldovagaz to provide more than 54 million dollars. The money will be paid to the company on October 20, and it will have to repay the loan by May 1, 2023. The loan will be guaranteed by a full pledge in favor of Energocom of a 100% share of Moldovagaz in the authorized capital of LLC Moldovatransgaz, together with assets.

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“The loan will be allocated at the interest rate of the base rate of the National Bank, which currently stands at 21.5% per annum, as collateral – the gas transmission system, which is of strategic importance for the country’s energy security. If this debt is not repaid before May 1, 2023, then the government will receive a gas transmission network,” Gavrilitsa explained.
Moldova is experiencing an energy crisis due to rising energy prices. The authorities intend to reduce gas consumption in winter by at least 15%, and have also developed and submitted for discussion a plan that includes turning off street lighting, lowering the central heating temperature, transferring schoolchildren and students to distance learning. Since August, Moldovagaz has been cutting off consumers who have not paid on time for services for the supply of natural gas. In October, Gazprom reduced the volume of gas supplies to Moldova by 30%.

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Translation by RJ983

Disclaimer: Via RIA Novosti – Checked

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