Moldova declares state of emergency over gas payment crisis

CHISINAU, Jan 20 (PRIME) – Moldova’s parliament declared the state of emergency for 60 days on Thursday over the risk of discontinuation of gas supplies, speaker Igor Grosu said.

"50 deputies supported the initiative to declare emergency for 60 days," he said, adding that the communist and socialist faction refused to support the government initiative.

On Wednesday, Gazprom refused to agree to a payment delay Moldova had asked for and promised to switched gas supplies off unless the country pays U.S.$38 million out of its $63 million debt for January by Thursday.

Moldovagaz failed to collect the money and the government went to parliament to impose a 60-day state of emergency because it will allow the state to provide the funds to the company.

Gazprom and Moldovagaz prolonged their long-term gas supply contract for 5 years in October after protracted negotiations.

 Gazprom said then it agreed to almost all Moldova’s conditions taking into account the situation in the country, but insisted that Chisinau make current payments in full and on time. It also increased the price for Moldova to U.S. $646 per 1,000 cubic meters in January from $450 in December.

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