Moldovagaz, Gazprom draft skeleton agreement over gas debt

CHISINAU, Nov 8 (PRIME) -- Moldovan gas distribution company Moldovagaz and Russian gas giant Gazprom have agreed that Moldova will redeem its debt in the next five years, Moldovagaz CEO Vadim Ceban said on November 5.

Moldovan President Maia Sandu earlier said that Moldova’s total debt to Gazprom stands at about U.S. $7.5 billion. Excluding Moldova’s breakaway republic of Transdniester, Moldova owes about $430 million. Taking into account the penalty as of October 2021, the debt may amount to $700 million.

“Moldovagaz and Gazprom have drafted a skeleton agreement on the gas debt redemption, including penalties. Support of the shareholders is necessary here because Moldovagaz’ internal resources may not suffice,” Ceban said in an interview to RTR Moldova television channel.

“An intergovernmental energy agreement, which Russia and Moldova are to sign next year should help that.”

The companies also have a tentative five-year timetable for the redemption. If no solution of the debt problem is found, it will mean insolvency of Moldovagaz, he said.

On October 29, Moldova agreed with Gazprom to extend a gas supply contract for five years on condition that Moldovagaz’s debt is audited in 2022.

End