By Alexander Miller, consultant in energy markets – Eurasia Business News, December 30, 2024. Article n°1356.

Moldovan Prime Minister Dorin Recean has announced preparations for the nationalization of Moldovagaz, the country’s gas utility, which is partially owned by Russia’s Gazprom. This decision comes amid escalating tensions over alleged unpaid debts to Gazprom, which claims Moldova owes approximately $709 million. Gazprom has threatened to halt gas exports to Moldova starting January 1, 2025, citing these unpaid debts as a significant breach of contract.

Mr. Recan is dissatisfied with Gazprom’s decision to stop gas supplies to Transnistria from January. According to him, this decision was made contrary to the agreement with Moldovagaz and under the pretext of the company’s non-payment of the debt.

“An international audit has shown that there is no debt. Maybe this money was spent on travel and yachts, but it is unacceptable to shift this debt onto the shoulders of Moldovan citizens,” the prime minister said at a government meeting.

Advertisements

Dorin Recean said that Moldova “has coped with Russia’s energy blackmail before.” He instructed the Ministry of Justice to prepare amendments allowing the nationalization of enterprises, including in strategic areas. “By the way, these objects (Moldovagaz) were also forcibly taken away from us once. And we must return them to the ownership of the state,” added Mr. Rechan.

JSC Moldovagaz was established in 1999 as the primary gas utility in Moldova, succeeding earlier entities that managed gas distribution and supply in the region. The company was created to consolidate various former subsidiaries of the Moldova-Gaz concern into a single entity responsible for importing, distributing, and supplying natural gas across the country.

Structure of the capital : 35.33% of its shares are owned by the government of Moldova, 13.44% by the property management committee of the unrecognized Transnistria, 1.23% by minority shareholders.

In the early 2000s, the Transnistrian authorities transferred their shares to Gazprom for management. In 2021, Gazprom and Moldovagaz signed a contract for five years. One of its conditions was the repayment of the debt by Moldova. The Russian company estimates it at $709 million.

Our community already has nearly 145,000 readers!

Subscribe to our Telegram channel

Follow us on Telegram, Facebook and Twitter

© Copyright 2024 – Eurasia Business News. Article no. 1356.