* The annual contract between Gazprom & Moldova expired on the 30/09 (price was ~550$/1k m3).
* Current Gazprom offer contract is ~790$/ 1K m3 and that’s what Moldova pays in October (there’s a formula which ties the price to NCG hub in Germany).
* Gazprom also requires Moldova to repay 433 mln USD in gas debt (709 mln USD including fines for delay or non-payment) accrued over last years and is willing to reduce to 790$ price by 25% provided historical debt is paid within 3 years.
* Ukraine and Romania offers gas for 1100$/1K m3 – current EU TTF hub price, well above GazProm offer.
* Moldova doesn’t want to repay it’s historical debt and would like to pay 500$/1K m3 or less. GazProm refuses.
**The political impact:**
The pro EU Moldovan government wants to be able to take an anti Russian stance whenever it likes whilst being able to maintain preferential gas prices below market rates. They can’t have their cake and eat it too. If Moldova wants to enjoy some benefits from Russia, the strategic move will be to avoid getting involved in political situations where it has nothing to gain. An example is the president going to Ukraine and declaring that Crimea belonged to Ukraine and expecting everything to be merry with Russia. She’ll soon learn the hard way.
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Why not name the country
**The Facts:**
* The annual contract between Gazprom & Moldova expired on the 30/09 (price was ~550$/1k m3).
* Current Gazprom offer contract is ~790$/ 1K m3 and that’s what Moldova pays in October (there’s a formula which ties the price to NCG hub in Germany).
* Gazprom also requires Moldova to repay 433 mln USD in gas debt (709 mln USD including fines for delay or non-payment) accrued over last years and is willing to reduce to 790$ price by 25% provided historical debt is paid within 3 years.
* Ukraine and Romania offers gas for 1100$/1K m3 – current EU TTF hub price, well above GazProm offer.
* Moldova doesn’t want to repay it’s historical debt and would like to pay 500$/1K m3 or less. GazProm refuses.
**The political impact:**
The pro EU Moldovan government wants to be able to take an anti Russian stance whenever it likes whilst being able to maintain preferential gas prices below market rates. They can’t have their cake and eat it too. If Moldova wants to enjoy some benefits from Russia, the strategic move will be to avoid getting involved in political situations where it has nothing to gain. An example is the president going to Ukraine and declaring that Crimea belonged to Ukraine and expecting everything to be merry with Russia. She’ll soon learn the hard way.