Moldova declares state of emergency

The government of moldova has declared a new state of emergency of 60 days, after a warning from the Russian energy company Gazprom that it could stop deliveries of gas to the country due to unpaid invoices.

Prime Minister Natalia Gavrilița announced the news at a cabinet session on Wednesday, saying: “The decision has been approved. Now it must be confirmed by parliament. After that, an emergency commission will take all measures to ensure that consumers have uninterrupted access to gas.”

Crisis in Moldova

Crisis in Moldova.

Gavrilița reported that Gazprom had sent the Moldovan government an official notice that if it did not pay its outstanding debts to the company in January, the Russian state-owned energy giant would suspend gas shipments. Deputy Prime Minister Andrei Spinu also said that Moldova would request to pay off its debts in stages.

“(The state energy company) Moldovagaz will pay Gazprom an advance payment of 38 million dollars before January 20,” Spinu announced. “That leaves another $25 million in January, and Moldovagaz requested that this payment be delayed, but could not reach an agreement with Gazprom, which did not want to help its daughter company.” He added that Moldovagaz is counting on receiving credit to pay off this debt.

Vadim Cheban, director of Moldovagaz, had previously announced that the company would not be able to pay Gazprom in January, saying that tariffs had not kept up with the rising cost of gas, and that the company was in such financial straits that it could not could get credit from banks.

State of emergency

Moldova had previously declared a state of emergency in October to combat its energy crisis, after which Moldovagaz and Gazprom signed a five-year contract, agreeing to monthly payments.

Moldova was forced to request an extension of its payment from November, when Gazprom also threatened to suspend shipments, but Moldovagaz was finally able to pay the $75 million bill.

As we mentioned in AmericanPost.News, during his speech this Wednesday, Spinu insisted that this situation will not happen again once the current crisis is resolved.

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