RFE
28 Oct 2021, 13:45 GMT+10
The European Union says it will provide Moldova with 60 million euros ($70 million) to help the country manage its natural gas crisis triggered by Chisinau's failure to agree on a new energy deal with traditional supplier Russia.
The announcement by European Commission President Ursula von der Leyen on October 27 comes after Moldova bought a million cubic meters of natural gas from Poland earlier this week.
The government said it was the first purchase of gas from alternative sources in the history of independent Moldova.
The country sandwiched between EU member Romania and Ukraine declared a state of emergency last week after its gas contract with Russia's state-controlled Gazprom, the largest supplier of natural gas to Europe, expired at the end of last month, and the two sides failed to agree on details of a new long-term deal.
Gazprom has extended the contract to the end of October, while slashing its gas supply by about a third and raising the price to $790 per cubic meter from $550 last month. The government in Chisinau says it will continue talks with Gazprom and seek a 'fair' price.
SEE ALSO: Moldova Declares Energy Emergency Over Gas Shortage
Moldovan Prime Minister Natalia Gavrilita has blamed Moldovagaz, whose main shareholder is Gazprom, for not supplying the required volume of gas -- an accusation rejected by the company.
Gavrilita, who is in Brussels for an EU-Moldova Association Council meeting on October 28, thanked von der Leyen for the EU's show of solidarity. The 60 million euros is in the form of a grant, not a loan.
Some experts say Moscow has boosted prices to retaliate against Moldova after the country elected pro-Western President Maia Sandu last year.
Kremlin spokesman Dmitry Peskov said on October 27 that talks with Moldova's government on gas prices were 'exclusively commercial.'
'There is no politicization here and there cannot be,' he said.
The country of 2.6 million people consumes 2.8 billion cubic meters of gas per year.
Moldova's energy crisis comes as natural gas prices across Europe and other parts of the world have soared to record levels in recent weeks amid a global supply crunch.
Copyright (c) 2018. RFE/RL, Inc. Republished with the permission of Radio Free Europe/Radio Liberty, Washington DC 20036
Get a daily dose of Boston Star news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Boston Star.
More InformationREDMOND, Washington: Artificial intelligence is transforming Microsoft's bottom line. The company saved over US$500 million last year...
WASHINGTON, D.C.: A federal rule designed to make it easier for Americans to cancel subscriptions has been blocked by a U.S. appeals...
BASTROP, Texas: In a surprising turn at Elon Musk's X platform, CEO Linda Yaccarino announced she is stepping down, just months after...
NEW YORK CITY, New York: Former British prime minister Rishi Sunak will return to Goldman Sachs in an advisory role, the Wall Street...
LONDON, U.K.: Physically backed gold exchange-traded funds recorded their most significant semi-annual inflow since the first half...
AMSTERDAM, Netherlands: Some 32 percent of global semiconductor production could face climate change-related copper supply disruptions...
WASHINGTON, D.C.: Travelers at U.S. airports will no longer need to remove their shoes during security screenings, Department of Homeland...
(Photo credit: Wendell Cruz-Imagn Images) Cody Bellinger hit three homers for the first time in his career and drove in six runs,...
(Photo credit: Neville E. Guard-Imagn Images) Willy Adames drove in three runs with a triple and a home run, Dominic Smith added...
(Photo credit: David Butler II-Imagn Images) Ceddanne Rafaela hit a walk-off, two-run home run in the bottom of the ninth inning...
(Photo credit: David Butler II-Imagn Images) Boston Red Sox starting pitcher Hunter Dobbins exited Friday night's game against the...
(Photo credit: Brad Penner-Imagn Images) New York Yankees left-hander Carlos Rodon was named to the American League All-Star team...