The Republic of Moldova is detached from Gazprom, a company that demands a debt of $ 700 million. Official from Chisinau: “It is still the owner of the gas transport networks”

The Republic of Moldova is about to change the main supplier of natural gas, Moldovagaz (Fiica A Gazprom company), with a local state-owned enterprise. The Secretary of State of the Ministry of Energy in Chisinau, Constantin Borosan, explained for the public Hotnews which means this detachment from the Russian company that demands a historical debt from the Republic of Moldova of $ 700 million. Authorities only recognize $ 3 million.

The decision to renounce Moldovagaz was taken by the National Agency for Energy Regulation (ANRE) and enters into force from August 1. Moldovagaz company was established in 1999. Its largest shareholder is Gazprom, which controls 50% of shares, another 35.3% are owned by the Chisinau government, and 13.44% are owned by the Tiraspol administration.

In parallel with the decision to renounce Moldovagaz, the authorities of the Republic of Moldova are in the process of inventorying the gas transport and distribution networks, currently managed by the daughter company of Gazprom.

The Secretary of State of the Ministry of Energy of the Republic of Moldova Constantin Borosan explained for the public hotnews.ro, which means this decision for energy security in the Republic of Moldova.

– What does Energocom mean becoming the new natural gas supplier in the Republic of Moldova? What changes for consumers?
– Constantin Borosan: Nothing changes for consumers. It is the same as it happened on March 16, 2022 when the synchronization of our energy system took place to the one in the European Union. All consumers will have natural gas.

Regarding the procedure for appointing the supplier, first of all, we must mention the international commitments of our country that were adopted in 2009, when we joined the energy community and we have committed to transpose the energy packages.

There are transport companies and there are distribution companies, there are supply companies and there are companies on the free market that provide electricity. All these are the result of implementing energy packages. This is exactly how it must be in the natural gas sector.

This separation implies that activity of transport, distribution, supply, three distinct activities are performed by companies that are separated, are not influenced, because in this way, if they are done within one and the same company, there are risks regarding the restriction of the network and this is not in line with principles in Europeans.

For example, it may be the situation when certain suppliers identify natural gas sources, they want to deliver to consumers, but they are restricted access to the network by the companies that manage the network. This commitment, this obligation was still assumed in 2009. The term was set the year 2020, which was extended and the Moldovagaz company was to make this separation, but did not.

“Moldovagaz had a plan to separate from Gazprom, but it was not done”

– Who is to blame for not doing?
– This separation model is made throughout the European continent. Gazprom, who was previously shareholder in several companies in the European Union, also implemented the energy package III, so there are several solutions. In 2019 there was a detailed action plan on how the Moldovagaz company will make this separation, only that it was not made.

Now, it is the law that must be respected, but it is violated. There is a very high risk that until July 31, when it is the deadline for separation in Moldovagaz, this will not be achieved.

It also depends on the shareholders' decisions. We see how the majority shareholder, Gazprom, does not examine this topic, respectively, is a very high risk, but we cannot admit that consumers remain without natural gas, this is unacceptable. If until July 31, Moldovagaz does not implement this plan, then from August 1, the supplier is the company Energocom.

– What will be the further activity of Moldovagaz?
– As for the Moldovagaz activity, I want to remember that today this company is still the owner of the transport networks or part of the transport networks and part of the distribution networks. Better said is the founding parent company of distribution companies. The 12 companies, such as Chisinau-Gaz, Ialoveni-Gaz, etc., continue the licensed activity.

Therefore, Moldovagaz's daughter companies are distribution companies that operate distribution networks based on a regulated tariff and is the owner of a part of transport networks. The Ministry of Energy was charged, based on the decision of the Parliament, as a result of the Court of Accounts report, to make the inventory of the networks, because about two thirds of the networks do not belong to the Moldovagaz company and to be introduced in the economic circuit. It is a process that is ongoing.

– In this case, how could the process of natural gas supply of the Transnistrian region be influenced?
– Regarding the deliveries of gas on the left bank of the Dniester, I want to remind that the Ministry of Energy has promoted changes to the law on natural gas through which we introduced elements to ensure the security of gas supply on the left bank, so that there are no more such as this winter, when Gazprom, the Russian Federation, stopped the Moldovan provisions.

These provisions include the fact that the entity, the supplier delivering natural gas on the left bank, will be obliged to keep stocks of natural gas, as we keep stocks of natural gas for the consumption of the right bank since 2022, will have to be stocks for the left bank. This is an item.

What the second element: If the Moldovagaz license has been withdrawn, if it does not meet the separation conditions, there is a mechanism by which ANRE will be able to designate the entity that will deliver natural gas on the left bank. So, in any situation, we have the continuity of gas supplies to citizens.

“The citizens of the Republic of Moldova have no debt to Gazprom”

-About the debt invoked by Gazprom: Were there certain letters or other types of communications from Gazprom to this subject?
– You know what our position is: the citizens of the Republic of Moldova have no debt. All gases have always been paid and we have sent to Gazprom the audit report that is also published on our page.

– In general, do the Republic of Moldova plan to give up Moldovagaz completely?
– I want to remind you: Moldovagaz company provided natural gas in 2021, based on a contract with Gazprom. Subsequently, Gazprom decided to cease gas deliveries to the Republic of Moldova and no longer provide natural gas on the right bank, and from January this year – not on the left bank.

This is an element and the second, as I said-is the decision of the Parliament and we are now doing this activity. Even previous governments have begun, but they have not completed the subject regarding inventory of gas networks.

Today, two thirds of the networks are exploited by Moldovagaz, but these are not Moldovagaz, they are of the citizens of our country, who have invested in diversification, respectively the concept regarding the management of the networks that do not belong to the system operator will be implemented. This concept was presented publicly.

– How energetically independent is the Republic of Moldova now?
– The Government approved the decision on strengthening energy security in the Republic of Moldova, where we have committed to completely eliminate the possible uncertain energy resources from Russia. And I want to remember the citizens, those who will meet the material they have prepared that in 2021-2022 the Russian federation used energy as a weapon against our country, so it created instability, even on the European continent. So this is something to be considered now, respectively when we do not depend on a single source, no one can blackmail us, we can choose free from where we can purchase energy resources. Obviously, this strengthens our security.