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- October 16, 202612°
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- INTEREST37.00%-1.00
- BITCOIN81,246-1.08%
- October 16, 202612°
Dodon says Gazprom deal would have secured cheaper gas for Moldova
Igor Dodon, Moldova’s former president and leader of the Party of Socialists, said the formula in the contract with Gazprom would have provided the country with gas at a price approximately 15% below the European average during 2022-2026. Dodon argued that the total financial impact would have been around $745-750 million if the contract had remained in force.
Igor Dodon said Moldova’s decision to end gas purchases from Gazprom and turn to the European market had produced debatable results in terms of energy costs. The former president of Moldova and leader of the Party of Socialists said Gazprom’s pricing formula would have provided the country with natural gas at a price approximately 15% below the European average during 2022-2026.
Dodon recalled that the Chisinau administration halted purchases from Gazprom at the end of 2022 and switched to supplies from the European market through the state-owned company Energocom. The decision was explained by the need to diversify sources and ensure energy security.
The pricing structure in the Gazprom contract
The contract cited by Dodon was agreed with Gazprom in autumn 2021 and was set to remain valid until September 30, 2026. Under the pricing formula, a basket of petroleum products accounted for 70% and the TTF index for 30% in the first and fourth quarters of the year.
The proportions were reversed in the second and third quarters. Dodon said the method was intended to reduce the impact of sharp price increases in the natural gas market.
Dodon’s $745-750 million calculation
According to Dodon, the formula would have produced an advantage of approximately $480 million in 2022 alone compared with European prices. In the following period, gas covered by the contract was expected to be more expensive in some quarters and significantly cheaper in others.
Dodon said calculations through the contract’s expiration date showed a total financial impact of approximately $745-750 million in favor of the formula. He said Moldova’s decision to abandon a contract that could have eased fluctuations in market prices should be examined.
Moldova and Transnistria face gas supply problems
Moldova and Transnistria faced gas supply problems after the end of Ukrainian transit used to transport Russian gas to Europe and Chisinau’s refusal to pay its debt to Gazprom.
As Chisinau turned to European countries to meet its energy needs, the development was linked to an increase in household tariffs.
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