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Gazprom lifts threat of cut to Republic of Moldova’s gas supply

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Russian state gas producer Gazprom withdrew a threat to reduce gas supplies to Republic of Moldova from Monday but said it reserved the right to lower or halt flows in future if the country failed to make agreed payments, according to Reuters.

Last week, Gazprom accused Ukraine of withholding gas supplies which pass through the country on the way to Republic of Moldova – something Kyiv denied and said it could start reducing those flows from Monday.

In its latest statement, Gazprom stated that Moldovan natural gas company Moldovagaz had paid for gas deliveries in November, adding that it had received payment for what it called gas destined for Moldovan customers but which remained in Ukraine.

However, Gazprom accused Republic of Moldova of “regular violations” of payment obligations and added: “Gazprom reserves the right to lower or to fully suspend supplies in case of payment violation.”

European gas prices rose last week on Gazprom’s threat to cut flows to Republic of Moldova, as the supply route via Ukraine is the last functioning Russian gas corridor to Europe.

Gazprom says the former Soviet republic owes it about $9 billion, a debt that has accumulated over decades because of non-payments by the breakaway Moldovan region of Transdniestria, where about 1,200 Russian troops are stationed.

Republic of Moldova refuses to recognize the debt as its own. Transdniestria currently uses about 40% of the gas imported by the country, but does not pay the Moldovan government for it and refuses to discuss the issue.

Vadim Ceban, head of Moldovagaz, said on Monday that the advance November gas bill had doubled to $42 million – which he said Moldovagaz had paid – amid increased gas demand by Transdniestria.

In a sign that flows were uninterrupted, Gazprom said separately on Monday that it will ship 42.2 million cubic metres of gas to Europe via Ukraine on Monday, only slightly down from Sunday’s level of 42.6 mcm. Both figures include flows to Republic of Moldova.

Ukraine and Republic of Moldova last week accused Russia of using gas supplies as an instrument of blackmail, an accusation Moscow rejects.