The European Bank for Reconstruction and Development (EBRD) has become a shareholder with a 25% interest in Vestmoldtransgaz, the Moldovan subsidiary of the Romanian gas transmission company Transgaz, SeeNews reported.

The EBRD became a Vestmoldtransgaz shareholder after fulfilling the condition of a subscription agreement to increase the share capital of the subsidiary by 20 million euro ($23.5 million) in order to finance the development costs of the gas transmission pipeline Ungheni-Chisinau.

Afaceri.news recalls that last year Transgaz and the EBRD signed a Memorandum of Understanding under which, depending on Transgaz's financing needs, the EBRD will consider co-funding the project by providing lending or equity participation instruments.

The latest deal takes the partnership a step further, creating conditions for important projects in the future. Regarding the current business, EBRD Vice President Alain Pilloux stated that this “is an important step towards the geographical diversification of Moldova’s energy supply. After investing in a 25% stake in Vestmoldtransgaz, the EBRD is playing a key role in strengthening the country’s energy security and contributing to sustainable economic growth that benefits everyone.”

Founded in 2014, Vestmoldtransgaz owns and manages the gas pipeline network in western Moldova and provides gas transportation services in the country. Transgaz took over Vestmoldtransgaz in 2018 through its Moldovan subsidiary Eurotransgaz, for 180.2 million Moldovan lei ($10.2 million / 8.7 million euros). The 120 km long pipeline between Ungheni and Chisinau interconnects the gas transmission systems of Romania and Moldova.