Russian energy giant Gazprom has Moldova’s gas authority for withdrawing the license from its local subsidiary for distributing gas, saying the move was harmful to the Chisinau branch and Moldova’s energy security.
This week, Moldova’s gas regulator, the National Agency for Energy Regulation, announced it had withdrawn Moldovagaz’s license to distribute gas. Fifty percent of the shares belong to Gazprom.
The license has been awarded to the Moldovan state-run Energocom company which will distribute gas to 800,000 consumers starting Sept. 1.
Russia’s Gazprom has accused Moldovagaz of failing to pay at least $709 million in arrears for gas supplies, mainly from state-run industries.
Moldova has long been in dispute with Gazprom over prices and what the Russian gas giant describes as arrears. It has actively sought to reduce reliance on Russian supplies and clinched agreements to purchase gas from suppliers in Europe.
However, Moldova, does not recognize the debts which led to a a cutoff in gas supplies in January, and interrupted gas supplies for several weeks to Transnistria, a pro-Russian separatist region on Moldova’s border with Ukraine.
On Thursday, Gazprom said said Moldova had failed to resolve the debt, despite what it said were proposals to find a solution to the arrears.
“The Moldovan government has introduced a series of measures leading to… the forced reorganization of Moldovagaz … a sharp rise in gas prices and, as a consequence, a decline in the country’s energy security,” Gazprom said.
Gazprom said it would continue “to defend its lawful rights and interests with all available means.”
It said its decision was taken as Gazprom was demanding payment of arrears it did not recognise and was failing to implement changes demanded by the European Union on separating responsibility for transporting and supplying gas. Moldova’s pro-European government is seeking EU membership by 2030.
Moldovagaz Chairman Vadim Ceban said this week the issues were “political” in nature and therefore out of the company’s control.
