During a meeting in the village of Kongaz with representatives of the Gagauzian Women’s Association, Moldovan President Maia Sandu asserted that the government would announce next week that the country does not owe Gazprom $800 million. The remarks were reported by Moldavskie Vedomosti and cited in subsequent coverage. Sandu emphasized the urgency of the moment, noting that Moldova faced a difficult winter and had agreed to a substantial payment in a four-year arrangement that she described as alarmingly large. The president argued that the terms were imposed without adequate consideration of Moldova’s broader energy options, especially given decades of cooperation with Russia that did not explore alternative suppliers.
According to Sandu, the goal was to reach a quick settlement that would not leave the country gasless as winter approached. He criticized the arrangement as unfavorable and pointed out that Moldova did not seek gas from other sources throughout a long period of partnership with Russia. The government contends that if gas is sold only through one monopolist, the market setup is not normal, and representatives of the Russian side argued that changes to national law could not be accomplished within two months to secure new contracts. The president described the situation as unattractive for those involved in the negotiations.
How much is Moldova’s gas debt?
Sources indicate that the contract was set to extend for another five years in the fall of 2021, with Gazprom and Moldovagaz handling gas supply from Russia. The parties reportedly agreed that the price of natural gas would be subject to monthly adjustments based on currency fluctuations, while the Moldovan authorities would verify and settle outstanding debts. The broader accounting of Moldova’s gas debt has varied by source, with figures ranging around the high hundreds of millions of dollars and including penalties for late payments. The national Chamber of Accounts has provided a figure in the vicinity of $590.8 million, while other outlets have cited different tallies including a balance of about $709 million that accounts for debt plus penalties. (Source attributions: TASS, Moldovan state bodies, and independent observers)
In April, the Moldovan Energy Ministry announced the decision to overhaul the audit process by engaging foreign firms to review past debts. The ministry indicated that the audit would help clarify debt origins and inform future decisions regarding Gazprom’s role in the energy sector. The audit reportedly cost about 1.15 million euros. Officials said results would be made public after careful review, given the sensitive nature of the debts and the implications for bilateral relations.
Gazprom and Audit Results
Officials note that there are concerns within Moldovagaz that Gazprom may not recognize the audit results. A board source, speaking on condition of anonymity, suggested that political sensitivities surrounding the debt could influence how findings are shared and interpreted. The Norwegian firm involved in the audit has previously played a role in Ukraine’s dispute with Gazprom in international arbitration, which Gazprom eventually lost. The Moldovan government has indicated that the ultimate disclosure of debt details should come from Moldovagaz’s management as the entity most closely connected to the balance sheet.
Dependence on Russian Gas
Moldova’s energy sector had until recently been heavily reliant on Russian gas, with Gazprom holding a 50 percent stake in Moldovagaz, the distributor. Prior to 2011, gas pricing followed a European formula that integrated world fuel price dynamics. Since 2012, prices were renegotiated annually through bilateral agreements, and by the end of 2016 the contract allowed quarterly price calculations tied to petroleum product offers. In 2019, a discount was reportedly negotiated with Russian officials, reducing the price by roughly 10 to 15 dollars per thousand cubic meters.
The gas supply contract expired on September 30, 2021, prompting renewed negotiations. Gazprom pressed for repayment of the alleged $709 million debt, excluding debt in the Transnistria region, while offering temporary relief through a discounted market price if Moldova would accept the debt and settle outstanding deliveries. Moldova declined to recognize the debt as presented, leading to a stalemate that affected supply terms. For a period, Gazprom continued to deliver gas at market rates, with discussions focused on extending the contract while Moldova’s obligations regarding the debt remained unresolved.
Emergency Measures and Diversification
When negotiations faltered, several Moldovan enterprises shifted to alternative fuels, and the country activated an emergency regime in response to gas shortages. Efforts to diversify included seeking smaller volume imports from Poland, the Netherlands, and Ukraine. Gazprom subsequently signaled a willingness to continue supply if Moldova paid for September and October deliveries while negotiations addressed the broader debt issue. Moldova’s leadership underscored a move toward European energy network integration, signaling a strategic pivot away from dependence on Gazprom. In 2023 and into 2024, officials reiterated that Moldova should consider reducing or ending direct gas purchases from Russia, acknowledging potential supply constraints but highlighting the resilience of a diversified energy portfolio. (Source attributions: official statements and regional coverage)