The solution proposed by the Government to repay a current debt owed by Moldovagaz to Gazprom is a debt transfer contract worth 1.4 billion lei, whereby the state company Energocom would take over a part of the debt owed by the utility Termoelectrica to Moldovagaz. The Government has been working on this solution since last week, but more time is needed to get it through all the legal procedures, stated Deputy Prime Minister Andrei Spînu.

In a press conference on Tuesday, Spînu recalled that 1.7 billion lei had been allocated to Energocom during the October energy crisis. It used some 300 million lei to buy gas from alternative sources, leaving 1.4 billion lei unspent.

But the expenses, which involve State Budget adjustment, require Parliament’s approval. The legislature is due to assemble on Thursday to give its final sanction.

“These actions by the Government allow us to both reduce Termoelectrica’s debt to Moldovagaz and solve the problem with the current bill for the consumed gas. This measure also helps to reduce the debt owed by the right bank, by Moldovagaz to Gazprom, in line with the commitment made by the authorities. The future relationship between Energocom and Termoelectrica will be resolved in the next period, given that both are state-owned companies. In order to solve this situation, the Government needs a little more time for the legal procedures”, said Andrei Spînu.

The deputy prime minister added that the payment method for current consumption was not part of talks on the new gas supply agreement, but is part of provisions from previous contracts. He assured that the Government will do everything necessary to prevent gas supply disruptions.

However, Spînu said the Government regrets that Gazprom chose to notify Moldovagaz in such a way and that he will discuss with the Russian gas supplier to make sure that it doesn’t act on its ultimatum and halt supplies.

Gazprom warned Moldovagaz that it would cut supplies unless the latter paid the October bill within 48 hours.