Russian gas to be taxed at zero

Oil and natural gas, including in condensed liquid form, imported from Russia will be subject to zero rate indirect taxes. However, this measure will not imply price cuts. The provision granting this tax exemption is part of the Protocol to the Agreement between the Government of Moldova and the Russian Government on principles of indirect taxation in bilateral trade, recently ratified by the Parliament. According to Finance Deputy Minister Ion Chicu, in agreement with these amendments, the 18 percent VAT and the excise will not be applied any longer to the purchase price of these products in Moldova. When asked whether the amendments could bring about eventual gas price cuts, the official said that, in compliance with the agreement between Moldovagaz and the Russian concern Gazprom, the delivery price is established quarterly and depends on a set of variables, and this means we shouldn’t expect any drops in price.