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    Gazprom offers Moldova cheaper gas in exchange for weaker EU ties: press

Summary

Russia has been accused of exerting pressure on Moldova in response to its election of a pro-West president, Maia Sandu, last year.

by: Joseph Murphy

Posted in:

Complimentary, Natural Gas & LNG News, Europe, Corporate, Contracts and tenders, Political, Regulation, Intergovernmental agreements, Supply/Demand, News By Country, Moldova, Russia

Gazprom offers Moldova cheaper gas in exchange for weaker EU ties: press

Russia's Gazprom has offered energy crisis-stricken Moldova a new contract for gas supply at a lower cost in exchange for the country adjusting its free trade deal with the EU and delaying energy market reforms agreed with Brussels, the Financial Times reported on October 26 citing people briefed on the discussions.

Moldova declared a state of emergency over gas shortages on October 22, after Gazprom, which supplies all the country's gas, cut shipments at the start of this month by a third following the expiry of their long-term contract. A temporary agreement is in place but that too will expire at the end of this month. Moldova is also paying much higher prices under the current arrangement.

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Gazprom is prepared to offer a new contract with a lower price if Moldova agrees to amend its tariff-free trade deal with the EU, and delay the implementation of EU rules that require gas markets to be liberalised to allow more competition, the FT said. Gazprom currently enjoys a monopoly over the country's gas supply, and also controls its transmission system operator Moldovagaz.

Russia has been accused of exerting pressure on Moldova in response to its election of a pro-West president, Maia Sandu, last year. But the Kremlin has denied using gas supply in Europe as a geopolitical tool.