Raise in gas price is unlikely as Moldova becomes more loyal to Russia – expert

The economic analysts Veaceslav Ionita believes that the gas price will not increase for three reasons: Moldova became more loyal in its relations with Russia; worse world conjuncture for Russia; gas prices started to drop on the world market. According to the expert, Russia’s use of energy for political purposes was caused by the past two years’ increase in gas price. “Russians lose ground in negotiations, while the world market gas price is constantly dropping, and Europe dissociated itself from Russia in energetic issues. This is why I tend to believe that the gas supplied to Moldova will not increase in price. If it will still rise, the price will be set at USD 200 per 1000 cubic meters at most”, Ionita said. The concession Moldova could make for the Russian Federation in what concerns gas is, as Ionita put it, the right to build here production facilities, i.e. power plants. “Russia’s old dream is to conquer the Balkan energetic market, but power transportation over distances exceeding 1000 km is loss-making. That is why building production facilities in the RM would do the trick: to deliver gas to Moldova, to produce power here and to deliver it to Balkans”, the expert maintains. Prime deputy premier Zinaida Greceanii has said recently that by the end of the year Moldova will sign a 5-year agreement with the Russian Concern “Gazprom”. According to her words, talks concerning a new long-term agreement are continuing, having parties engaged in reaching a settlement to debts-related issues, specifically, in what concerns Transnistria’s debts for gas. Previously, the deputy premier has firmly denied the possibility of ceding thermo-energetic enterprises in exchange for a convenient contract. She emphasized that attracting Russian investments doesn’t mean ceding enterprises, and that “Gazprom” has equal chances, along with other investments, to participate in investment tenders. Starting July 1, 2006, Moldova imports Russian gas at a price of USD 160/ 1000 cubic meters, compared with USD 110 paid in the first semester. The Government managed to keep the state property, and to preserve its share in the Moldovan energetic system.