Latest News

Gazprom, the Russian gas company, denounces Moldova's move to change its gas supply system

Gazprom, the Russian gas giant, denounced on Thursday a decision by Moldova's Gas Authority to withdraw its licence for its local subsidiary's distribution of gas. It said the move damaged their affiliate and compromised Moldova's security in energy.

The National Agency for Energy Regulation in Moldova, which regulates the gas industry, announced this week that the license to distribute gas was withdrawn from Moldovagaz. 50% of Moldovagaz's shares are owned by Gazprom. Instead, it has been given to state-run Energocom.

Energocom will take over the distribution of gas to 800.000 consumers from September 1, it announced.

Gazprom claims that Moldova has arrears of at least $709 millions for gas supplied, mostly to state-run enterprises.

Moldova says that it does not owe any such debts. This was the main reason for a gas supply halt in January. Gas supplies to Transdniestria - a prorussian separatist region near Moldova's border to Ukraine - were halted for several weeks after the cutoff coincided with the end of gas transit via Ukraine.

Gazprom said in its most recent statement that Moldova failed to resolve the debt problem, and added the gas concern has issued proposals to solve the arrears.

Gazprom stated that "the Moldovan government introduced a number of measures which, in the end, led to the forced reorganisation Moldovagaz...a sharp increase in gas prices, and as a result, a decrease in the energy security of the country."

Gazprom stated that it will continue to "defend its lawful rights with all available methods."

Moldova has been involved in a dispute with Gazprom for many years over price and what they call arrears. It has sought to reduce its dependence on Russian gas and signed agreements to buy gas from European suppliers.

The company said that its decision was made because Gazprom demanded payment for arrears they did not recognize and failed to implement the changes requested by the European Union regarding separating responsibility between transporting and supplying of gas. Moldova's pro European government wants to join the EU by 2030.

Vadim Ceban, the chairman of Moldovagaz, said that the issues are "political in nature" and out of their control. (Reporting from Moscow and Alexander Tanas, Chisinau. Writing by Ron Popeski. Editing by Chris Reese.

(source: Reuters)