The previous contract between Moldova-Gaz and Gazprom will be extended by five years using a price formula proposed by the Moldovan party, with supplies to start under the new contract on November 1. This was announced by the Moldovan Ministry of Infrastructure and Regional Development following negotiations with Gazprom in Sankt Petersbug, IPN reports.

The parties reached an agreement in principle on the price formula, on an audit to be conducted in order to estimate the debt owed by Moldovagaz to Gazprom and on the need for further negotiations to establish a repayment schedule.

According to the Ministry, in October Moldova received gas under a one-month extension of the contract with Gazprom, albeit in lower than expected amounts. The difference was purchased during this period on the spot market, through the state company Energocom, at market prices.

Moldova has been negotiating a new contract with Gazprom since the beginning of October. The contract, which expired on September 30, was extended for a month to allow time for negotiations. For October, Moldova paid $790 per one thousand cubic meters compared to $ 550 in the previous month.

Negotiations on a new gas deal began at the International Gas Forum in St. Petersburg, continuing in Moscow, but to no avail. The latest round of negotiations with Gazprom began three days ago.

Meanwhile, the Republic of Moldova has purchased gas from alternative sources, at market prices, in order to maintain an adequate pressure in the system. Also, the EU granted €60 million to Moldova to support the vulnerable population.