New relations with Russian gas and power suppliers

Minister of Economy Valeriu Lazar announced that the relations with the gas and electric power suppliers of Russia have changed. The issue of cooperation in the energy sector was in the agenda of the meeting of the joint Moldovan-Russian intergovernmental commission that took place recently in Moscow, the Deputy Prime Minister, who is the commission’s chairman on behalf of Moldova, said in a news conference on March 22, Info-Prim Neo reports. “We agreed a number of principles with the Russian side so as to negotiate a new agreement on the supply and transportation of natural gas. The current agreement expires at the end of this year. We decided that the new contract will be negotiated by Gazprom and Moldova Gaz, not the Governments. The Russian colleagues also agreed to separate the historical debts of Transnistria (US$350 million) from those accumulated by the population living on the right bank of the Nistru (over US$2.2 billion),” said Valeriu Lazar. He also said he informed the commission that Moldova cannot provide guarantees that it will purchase electricity only from the Cuchurgan power plant, which is owned by Russia’s RAO UES, owing to the liberalization of the energy market. “Three private power distribution companies supply power to 70% of the consumers. We cannot oblige RED Union Fenosa for example to buy electricity from the Cuchurgan power plant only. In fact, RED Uniopn Fenosa negotiates with alternative suppliers as well,” the minister said. Asked if the current price of power for end-users will be maintained, Valeriu Lazar said this is rather improbable as the production costs increased, but he stressed he believes in RED Union Fenosa’s capacity to negotiate.