Ion Sturza: If I was Premier again, I’d replace administration of Moldovagaz

Former Prime Minister of Moldova Ion Sturza said the price of gas is more than a price as it is an economic and political notion. He made the statement in an interview for Radio Free Europe, Info-Prim Neo reports. Ion Sturza said two aspects in setting the price of gas are more important – the institutionalized corruption, non-transparency and mismanagement at Moldovagaz, which is administered by the representative of the Government of Moldova; and the agreement on the import price of gas between Moldova and Russia, which was signed several years ago and provides for a gradual increase in the price. “This is also a remnant of the old system of relations between the supplier and the consumer, when the state intervened, though we are speaking about two economic entities. The Government of Moldova also bears responsibility for this price formula,” said the ex-Premier. Ion Sturza said if he was Prime Minister again, the first thing he would do would be to replace the administration of Moldovagaz. “The new executives would be selected by international contest, not according to political or clientele principles. It would be a professional administration that would deal with the development of the market and the optimization of the company’s work,” he stated. The former Premier said that he would also hold discussions with Ukraine and other countries in order to change the method of calculating the price of gas. “When I saw the bill for gas in Chisinau I was astounded as for a square meter of apartment in Chisinau I pay almost twice more than in Bucharest and thrice more than in Vienna,” Ion Sturza said. He also said that the gas market changed significantly. The spot gas prices, not the long-term contract prices, are two or three times lower than the contract prices imposed by Gazprom two-three years ago. The prices of gas on the free market have decreased considerably, while in the long-term contracts remained unchanged. The companies and countries were once glad to have long-term contracts, but now seek their revision. This will inevitably lead to lower prices in most of the countries, including Moldova, said Ion Sturza. The alternative gas from other countries comes in liquid form and is transported to Europe through pipes. It is much cheaper than the Russian gas. “Moldova should think quickly and invest in the connections to other sources of gas going through Romania. It would be a political and a technical shock. I think this year we will witness spectacular changes and we will not fully depend on one supplier. We will be better connected with the foreign markets and the prices will be much lower,” the ex-Premier said.