Debt Row Escalates

Debt Row Escalates

As of January 1, Gazprom, a Russian natural gas company, will cease all deliveries to Moldova. The decision was officially justified by stating that the Moldovan side has refused to pay its debts for gas deliveries. A corresponding notice was sent to Moldovagaz.

According to the notice, the Moldovan operator has consistently failed to meet its payment obligations as stipulated in the existing contract. Gazprom considers this a significant breach of the contract’s conditions. The restrictions on gas deliveries to Moldova will remain in effect until Gazprom announces otherwise in writing.

In late November, Moldova’s Prime Minister, Dorin Recean, stated that the country did not intend to pay “non-existent” debts of approximately $709 million to Gazprom.

Moldova also held negotiations with Gazprom, with a Moldovan delegation traveling to the company’s office in St. Petersburg. Oleg Serebrian, Deputy Prime Minister for Reintegration, described the stop in deliveries as “not just a crisis, but a real humanitarian catastrophe.”

In the fall of 2021, both sides signed a five-year contract for gas deliveries, with the document stipulating that Moldova should settle its debts for past deliveries. Gazprom had initially estimated the total debt at around $709 million.