Gas price for the second half of 2006 decided on July 1 – Prime Minister

The Russian Company „Gazprom” will make the final decision regarding the price for gas supplied to Moldova for the second half of 2006 on July 1, when it announces its acceptance or refusal to participate in investment projects of the energy field, proposed by the Moldovan Government. The Prime Minister Vasile Tarlev made this statement on Friday, June23, after the Thursday meeting with the chairman of the Administration Council of the Russian Company „Gazprom”, Alexei Miller, and his deputy Alexandr Reazanov. According to the prime minister, during yesterday’s negotiations, RM got a reduction of the price requested by the Russian company, from 230 USD per 1,000 cubic meters to the figure of USD 160. Tarlev notes that, in case when „Gazprom” considers as attractive the proposals of Chisinau, the price of 160 dollars will be decreased, if not – for the second half of 2006 RM will pay 160 dollars per 1,000 cubic meters. Vasile Tarlev said that the negotiations on gas price are continuing, the specialists from „Moldova-Gaz” being permanently at „Gazprom” headquarters to conclude a proposal package. The prime minister is optimistic regarding the final results of the negotiations, saying that the dialogue was constructive; the Russian were prone to cooperate with RM and even showed their interest for certain investment projects. At the same time, he mentioned that on October 1, the RM leadership and the Russian company’s management will sign a 10-year gas supply agreement, in order to obtain stability in the bilateral cooperation. The Government got the confirmation on behalf of the Parliament that till the end of July the latter will approve the government initiative on offering certain advantages for large investments in the RM economy, and the management of „Gazprom” was informed about it. This fact, in the prime minister’s opinion, should influence on the decision of the gas supplier to cut the price. Regarding the investment projects proposed to the Russian company, the prime minister mentioned that they regard modernizing thermo-electric plants, constructing the connection to high pressure pipes passing via RM. Tarlev denied the rumor about ceding the whole stock of shares of the energy objects to „Gazprom”, yet mentioned that now certain joint cooperation forms are being identified. „Until we find alternative energy sources, we are forced to comply with the prices imposed by „Gazprom””, Tarlev highlighted. At the same time, he underlined that the efforts of the Government are directed as well on developing own enterprises for obtaining petroleum, and „preliminary data do not exclude that on RM territory gas sources might be discovered”. In the first half of 2006, Moldova purchased Russian gas at the price of USD110 per 1,000 cubic meters.