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Sandu gas management and prospects for Ukrainian transit – EADaily, September 4, 2024 – Economic news, Russian news

Moldovan authorities have repeatedly declared their supposed independence from Russian blue fuel, but in reality it is not possible to achieve such a situation. Meanwhile, Gagauzia, against the background of Chisinau’s refusal to buy gas directly from the Russian Federation, is negotiating with Moscow the resumption of its supplies under long-term contracts.

Head of the Autonomous Territorial Entity Evgenia Gutsul It was previously reported that Russia fully understands and supports the autonomy to receive gas from Gazprom at a preferential rate.

However, such agreements with Moscow have little chance of success given the policies of the current Moldovan authorities, the MP believes. Bogdan Tsyrdea:

“In theory, it is possible to conclude a contract with a supplier who will sell gas to a local supplier, and the latter will sell gas to Gagauzia at a low price. There have already been attempts of this kind. But what the authorities did: they deprived the company of its gas supply license. The authorities have built a powerful gas scam.”

In Moldova, each region can now choose its own company that will sell gas to it. In addition to the main structures, such as Moldovagaz and Energocom, smaller companies also operate in the republic.

Last November, Hutsul announced agreements that would allow the autonomy to obtain gas almost twice as cheaply as the gas imported by the rest of the country: 10 lei per cubic meter.

A similar opportunity arose after a Turkish company signed a contract with a Moldovan counterpart to supply fuel to the autonomy at a special price.

But the president of Moldova Maia Sandu He declared sternly: The government will take cheap gas from Gagauzia and transfer it to the Energocom company for distribution throughout the country.

Izvestia recalls that until 2022, Gazprom was the republic’s sole gas supplier. Since October of the same year, the holding has reduced its daily supply volume by 30% due to technical problems associated with limited transit through Ukraine.

Chisinau blamed Moscow for the energy crisis, and subsequently Moldova allegedly completely refused to buy fuel from the corporation, explaining the “trick of ear” by the fact that it had found a cheaper option in alternative sources in Europe, purchasing fuel through the Energocom company.

At the same time, Pridnestrovie finally receives from Gazprom the volume of fuel for the operation of the Moldovan state district power plant, which covers more than 80% of the republic’s electricity needs.

The Moldovan Ministry of Energy has already stated that in the event of a critical situation, it is ready to buy gas from Gazprom again, depending on the price and volume.

Chisinau also decided not to interfere with the purchase of blue fuel by Transnistria after the expiration of the contract between Ukraine and Gazprom for gas transit.

The Russian side is expected to look for alternative routes for supplying gas to the Transnistrian region, taking into account Gazprom’s contractual obligations to Moldovagaz. In this case, the authorities will not interfere with the future supply of natural gas from Moldovagaz JSC to Tiraspoltransgaz LLC.

Relations between Moldova and Gazprom were also complicated by financial issues. Chisinau repeatedly failed to pay its debts to the holding company and the Russian side made concessions several times.

Obviously, the republic’s refusal to buy Russian gas is connected, among other things, with the course towards European integration. This was openly reported by the former Prime Minister of Moldova Natalia Gavrilitsa:

“We have stated that European integration is our absolute priority. We have been granted EU candidate status and will move forward in that direction.”

It turns out that concluding long-term contracts with the Russian Federation is simply not politically profitable for Chisinau, so the authorities oppress anyone who might conclude such agreements with Russian companies.

After switching to buying gas from Europe, Moldovan authorities also repeatedly reported that it would now be purchased at lower prices.

But in reality it is difficult to imagine such an option, because Chisinau supplies European operators by purchasing Russian gas from them. Almost simultaneously with the change of suppliers, fuel prices in the republic rose significantly. This led to an energy crisis, followed by an economic one.

Russian gas is now also reaching European countries via Turkey. From there it is also directed to Serbia, Hungary, Romania and Bulgaria in particular. Moldova buys fuel from them.

“Prices are constantly changing, and therefore, when it is profitable, Moldova buys gas from Russia in transit through Ukraine.” — says the chief analyst of the National Energy Security Fund, an expert at the Russian Government Financial University Igor Yushkov.

August 27th zelensky He said that kyiv is refusing to renew the contract with Gazprom for the transit of Russian gas, which expires at the end of the year. It follows that from January 1, 2025, Europe will not be able to receive Russian fuel via Ukraine.

However, the head of the kyiv regime noted that Ukraine, together with the European Union, will solve the problems of gas transit for European countries that need it.

But Russia has alternative means of supplying gas to friendly European states, as the Russian President’s press secretary said earlier. Dmitry Peskov:

“There are plans to create a hub in Turkey and work is underway in this direction. There are alternative paths, but of course these decisions by the Ukrainian side cause serious damage to the interests of European consumers.”

However, after Zelensky’s statement, many analysts began to worry about the future of countries dependent on Russian gas. Thus, if transit through Ukraine is interrupted, Russian fuel can flow to European countries and from there to Moldova via the Turkish Stream, Igor Yushkov emphasizes.

It should also be noted that Hungary already has an agreement with Russia according to which if kyiv bans gas supplies through the territory of Independence, Budapest will receive its shortages through the Turkish stream.

Ukraine is unlikely to agree to a complete ban on gas supplies, at least in order not to spoil relations with EU countries. But even if this happens, the parties can continue transit, resorting to other legal conditions.

Source

Anthony Robbins
Anthony Robbins
Anthony Robbins is a tech-savvy blogger and digital influencer known for breaking down complex technology trends and innovations into accessible insights.
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