Moldova will have to pay for the consumed Russian gas at least $650 million more a year due to amended pricing formula.
Veaceslav Ionita, the expert on economic policy at the Institute for Development and Social Initiatives (IDIS) Viitorul, expressed this opinion, noting that such an amount of overpayment would be if gas prices don’t rise even more. The expert, speaking on the air of the TVR Moldova channel, stressed that according to the old pricing formula, the average annual gas price for Moldova should have been $250 per 1,000 cubic meters. In particular, in the IV quarter it would have amounted to $214 in 2021. However, according to the new formula, Moldova buys Russian natural gas in October at a price of $790 per 1,000 cubic meters, and later it might grow even more. Veaceslav Ionita drew attention to the fact that today the authorities wishing to return to the old pricing formula must first of all find out who is responsible for the situation, that Moldova has changed the contract formula, on the basis of which it will pay at least about $60 million more in October alone. “This difference will not be reflected in the tariff now, but people will still have to pay for gas at a higher price through the tariff, albeit later. In general, if the conditions for the purchase of gas according to the new formula, based on the spot prices on the German NCG exchange, remain, this will lead to an increase in the cost of gas by $650 million per year, if gas prices do not rise even more,” the expert said. In his opinion, before government representatives in negotiations with Gazprom offer to return to the old gas pricing formula, they must find out on the basis of what mandate, what analysis, what research and who specifically changed the old pricing formula. “We are talking about the “stolen billion”, but here it is someone, whom no one knows, and who adopted a decision, which the government is now challenging, and according to which we will pay $650 million more for gas every year,” Veaceslav Ionita said. In his opinion, in such a situation in Moldova, one can expect an increase in gas tariffs at least twice. “And in the best situation, we will have a gas tariff of at least 9 lei instead of 4.2 lei per 1 cubic meter. ANRE can make a gradual increase in gas, but we will still pay $650 million per year more for gas. This case needs to be investigated, it is necessary to identify the perpetrators, show Gazprom that there was an illegal procedure, submit materials, dossiers, show that the guilty have been punished. This is the first problem in discussions with the Russian gas holding,” Veaceslav Ionita emphasized. In turn, another expert, former ANRE Director General Victor Parlicov believes that if Gazprom discusses with the Moldovan government only technical issues related to the right bank Moldova’s repayment of the historical $450 million debt for gas and the introduction of the Third European Energy Package in the gas sector, then these problems are solvable. At the same time, he believes that, based on the course of events, Moscow, first of all the Kremlin, wants to show Moldova that concluding a gas contract and obtaining a more favorable gas price is a political problem that cannot be solved without politicians. // 12.10.2021 – InfoMarket
