Top European bank might provide Moldova support in emergency situation as to gas supply

Chisinau, 4 December /MOLDPRES/ - The cabinet of ministers today ruled to start negotiations on a draft agreement on support of the project and reimbursement titled, Instrument of gas procurement in emergency situation, between Moldova and the European Bank for Reconstruction and Development (EBRD).  

Experts find out major risks for Moldova, if the transit of natural gas between Russia and Ukraine to the South Eastern Europe is limited or ceased after 2019. Among the solutions identified for Moldova, there is also the purchasing of a volume of natural gas on the Ukrainian market or EU markets. Following discussions held with the development partners, such as the European Union, World Bank, Bank for Reconstruction and Development, EBRD expressed willingness as to the providing a mechanism of financing for the purchasing of a volume of gas necessary for Moldova (including related services; transport, storing, etc.) based on an agreement signed with Moldova to this end.       

„This is a reserve scenario, if problems appear in the gas supply after 1 January 2020 and the goal of which is to ensure Moldova’s energy security,” Prime Minister Ion Chicu said.  

According to the EBRD’s conditions for providing the financing mechanism, a contract is to be signed between the state company Energocom and Naftogaz, which establishes provisions on the organization of a tender by the Ukrainian side, in order to buy a quantity of natural gas, with its delivery to Moldova, if an emergency situation appears. The signing of the contract will be made, if the Moldovagaz stock company notifies about the impossibility for the company to fulfill this obligation of ensuring the last variant supply of natural gas and based on the approval of financing on behalf of EBRD.      

The head of the Moldovagaz Administrative Board, Vadim Ceban, has recently said that the agreement with Gazprom would be signed in the near time, which will extend the term of the contract on the supply of gas to Moldova and of transit of gas to the countries from the Balkans region starting from 1 January 2020. At the same time, the Moldovagaz head does not rule out that, as of 1 January 2020, Moldova might be supplied with gas through the pipeline Turkish Stream.   

Data by the National Energy Regulatory Agency shows that, in January-September 2019, Moldova bought 703.9 million cubic metres of Russian gas or by 12.1 million less against the same period of 2018. Most gas was consumed by the energy sector (35.1 per cent) and 239.3 million cubic metres (35 per cent) – by the residents.