The previous long-term contract with Gazprom expired at the end of September, leavingthe country vulnerable at a time when energy prices have surged across the whole of Europe.
The Moldovan government confirmed the new deal and said that it involved a mutually agreed price calculation formula and Moldova’s debt audit.
As part of the deal, Moldova agreed to return a debt estimated by Russia at roughly $700 million.
Russia’s state-controlled Gazprom said in a short statement on October 29:
- Gazprom and Moldovagaz extended the contract for Russian gas supplies to consumers in Moldova from November 1, 2021, for a period of 5 years on mutually beneficial terms.
- Moldova will pay around $450 per 1,000 m3 of Russian gas in November
- The price will decline going forward depending on the gas price on the exchanges
- In current conditions we will pay half the market price and less than what we paid in October
- Gazprom had accepted a price formula proposed by the Moldovan side
Josep Borrell, the EU’s top diplomat, accused Russia of «weaponizing» its gas monopoly in Moldova.
In October, after declaring a state of emergency, Moldova signed with Poland its 1st purchase from a source other than Russia in the 30 years of history of Moldova as an independent country: 1 million m3 of gas.
Moldovagaz is majority-owned by Gazprom, more than 80% of Moldova's electricity comes from a Russian-owned power plant.
In 2020, Gazprom delivered 3.05 billion m3 of gas to Moldova.
