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Economic and Political Implications of the Operator Change in Moldova’s Gas Transmission System

The operator of the Romanian gas transmission system Transgaz received control over the country’s GTS through an enterprise in Moldova. The Moldovan government leased it to Westmoldtransgaz for five years. On the one hand, Chisinau fulfills the requirement of the EU’s Third Energy Package on the division of production and transport capacities among independent companies. On the other hand, experts believe, there was a raider seizure of the GTS, owned by a joint venture, in which Gazprom is a participant.

“Moldova’s gas transmission networks will be operated by Westmoldtransgaz, owned by Transgaz Romania and the EBRD. The corresponding decision was made at a meeting of the Commission for Emergency Situations,” the government of Moldova reports. They specified that the five-year lease agreement was signed by Moldovatransgaz, a subsidiary of Moldovagaz and Vestmoldgaz. And in order for the contract to come into force, the document must be approved by the National Energy Regulatory Agency (ANRE).

“The separation of gas production, transportation, distribution and supply companies is part of the Third Energy Package, Moldova’s commitment to the Energy Community,” the government continued. Head of the Ministry of Energy Viktor Palikov said that the division of the capacities of Moldovagaz, of which Gazprom is one of the shareholders, is a huge leap in the transfer of European legislation and the liberalization and transparency of the gas market.

In Vestmoldtransgaz LLC, 75% belongs to the operator of the Romanian GTS Transgaz. And another 25% – to the European Bank for Reconstruction and Development (EBRD). Prior to this, Westmoldtransgaz operated the Iasi-Ungheni-Chisinau gas pipeline. According to Moldovatransgaz, which belongs to Moldovagaz, the country’s GTS is 1,560 kilometers of gas pipelines and one gas measuring station.

“In my opinion, it’s obvious that this is just a raider seizure of the GTS, which belongs to a joint venture,” says the deputy director of the National Energy Security Fund (FNEB) Alexey Grivach. In his opinion, fulfilling the requirements of the Third Energy Package is just a pretext.

“The rights of Gazprom as a shareholder have been grossly violated,” the FNEB deputy director believes. He notes that the joint venture has invested in the gas transmission system.

“I think this is also connected with the desire of Chisinau not to return the debt to Gazprom for the fuel supplied through Moldovagaz,” the expert said.

On the eve of the President of Moldova Maya Sandu stated that the international audit company did not find the country’s $ 800 million debt to Gazprom.

“We wanted to cheat quickly. They left us without gas. Winter is on the way. ”Let’s quickly sign that you will return $ 800 million in four years, and you will have gas”. We said we couldn’t sign it because it’s an awful lot of money and we can’t sign it. We were told: “You won’t have gas,” Maia Sandu said, according to Moldavskie Vedomosti.

In 2021, Gazprom renegotiated a contract for the supply of gas to Moldova for five years, subject to debt repayment. In the company, it was estimated at $ 709 million: the debt itself and the penalty. The Accounts Chamber of Moldova, in turn, announced a debt of $ 590 million.

2023-09-05 07:24:00
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