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Lilian Carp: Moldova aims to renegotiate contract with Gazprom


https://www.ipn.md/en/lilian-carp-moldova-aims-to-renegotiate-contract-with-gazprom-7965_1087056.html

Deputy Prime Minister Andrei Spînu is considering the possibility of renegotiating the contract with Gazprom so that the Republic of Moldova does not pay the advance of 50% to the Russian gas giant, said PAS MP Lilian Carp, noting that the price paid by Moldova for Russian gas is determined by the developments on the international market. At the same time, the extraparliamentary opposition and political commentators say the government should sincerely communicate with the people and should prepare them for new price rises, IPN reports.

Representatives of the government said the rise in the purchase price of gas was influenced by the fluctuations on the international market and Moldova does not have any leverage in this regard. According to MP of the Party of Action and Solidarity Lilian Carp, the Government should come up with new methods of support for the citizens with low incomes so as to help them pay the bills. It is also considered the possibility of renegotiating the contract with Gazprom.

“The price at stock exchanges is now over US$1,200 per 1,000 cubic meters of gas. The price of gas for the Republic of Moldova consists of two elements – the stock exchange price of natural gas and the price of oil. The price of oil is more stable than the price of gas. The current contract with Gazprom sets a price that is three times lower than the price on the European market and war must admit this. What Andrei Spînu aims to obtain by renegotiation is for us not to pay the advance of 50%. We realize that Moldovagaz does not have the capacity to pay in advance. At the moment, the amounts collected from citizens represent 40% of the necessary sum. We will be looking for solutions to assume the payment of the bill. It is considered the possibility of taking out a loan for Moldovagaz to be able to make the payment,” PAS MP Lilian Carp stated in the talk show “Black Box” on TV8 channel.

For their part, representatives of the extraparliamentary opposition say the payment of debts owed by Moldovagaz from state budget funds is becoming a dangerous practice that is also incorrect towards the citizens who do not consume natural gas.

“We have figures, data. Moldovagaz is the most closed enterprise. It is a state in the state. If we look strictly at the bills, the bills for December are two times higher than those for November. The sums are exorbitant. It is highly improbable that the payments will be made almost fully, as in November. Moldovagaz will seek support from the state budget. It is a defective practice when the money of taxpayers, a part of who are not consumers of gas, primarily in rural areas, is used to pay the debts of an enterprise, which is affiliated to Gazprom, owed directly to Gazprom,” said the representative of PPDA Alexandru Slusari.

Political commentators criticize the government for the defective communication in times of crisis. According to them, the authorities made a mistake when they announced that the purchase price will decline at a time when the rises were inevitable.

“Not the government sets the prices. The prices are determined by the market. The government has nothing to do with the price rises, but it bears political responsibility. The government has a communication problem. It should start to anticipate and to morally prepare the people for the expected difficulties. From economic viewpoint, the contract between Gazprom and Moldova is an absolutely unimportant element for Russia. Gazprom can offer us this gas gratis, but for them the gas is a geopolitical instrument for bringing the Republic of Moldova to the decided place in the geopolitical concept of the Russian Federation,” stated political commentator Anatol Țăranu.

“It could have been anticipated that the price will rise. There were very clear tendencies showing that there is a shortage of gas on the European market and the prices will remain high until the spring-summer season. But this wasn’t stated honestly. The population wasn’t prepared and we can describe the Ministry of Infrastructure’s communication as disinformation as it knew what will happen. At the negotiations with Gazprom, besides extending the contract, there was signed an additional protocol that clearly says that the Moldovan side undertakes to pay the bill. Respectively, if the population faces problems due to the payment incapacity and the subsidization mechanism is not sufficient, the agreement with Gazprom is at risk. The problem resides not only in the current price, but also in what we will be able to do the next few months if the price remains high,” said political commentator Dionis Cenușă.

In a press release, Moldovagaz said the purchase price of the natural gas supplied by Gazprom in January 2022 is US$646 per 1,000 cubic meters of gas. The rise is justified by the increase in gas quotations at European stock exchanges.