Since when does Moldova pay for gas in rubles and why will tariffs not increase in April
Moldovagaz chief Vadim Ceban says the company is not going to ask for an increase in domestic tariffs for April, although the price of Russian natural gas could double by more than $ 1,000 per thousand cubic meters.
“We will not ask for tariff increases in April,” Ceban told Free Europe on March 23.
Moldovagaz believes it will have no more liquidity problems. “Even with a higher price, over a thousand dollars, we will not have problems with payments,” explained the head of the company, Vadim Ceban, in the statement for Free Europe.
First of all, savings have been made. Secondly, consumption is expected to decrease “2-3 times”.
“The thermal energy companies will reduce gas consumption and use alternative fuel, including thousands of tons of fuel oil provided to the Republic of Moldova to help Romania,” the head of Moldovagaz told Free Europe, adding: not even in May, because market prices are falling. “
Look at the ruble
In the gas trade, Russia introduced a new unknown on March 23. Russian President Vladimir Putin has announced that he will ask “unfriendly” buyers in Europe to pay for gas not in dollars or euros, but in rubles.
His announcement led to a further rise in prices, but also to an increase in prices, but also in a short time of the ruble, which Western sanctions imposed on Western Russia due to the invasion of Ukraine have weakened sharply.
“Russia will, of course, continue to supply natural gas in accordance with the volumes and prices set out in the previous contracts (…) The changes will only affect the payment currency, which will be exchanged for Russian rubles,” Putin told a televised meeting. with high-ranking ministers.
The Moldovan authorities immediately said that the Republic of Moldova should not be affected. “That statement that I saw a few hours ago does not refer to the Republic of Moldova,” said Deputy Prime Minister Andrei Spinu.
The Moldovan-Russian contract of October 2021 provides, in addition to payments in dollars and euros, payments in rubles. Spinu said that Moldovagaz can pay for gas from Gazprom in any of the three currencies: if it has dollars, it pays in dollars, if it has euros – in euros, if it has rubles – in rubles.
“Even in February, but even now (in March) part of the amount was paid in rubles (…). Nobody forces the government or Moldovagaz to pay in a value that it does not have. It is an artificial subject “, Spinu also said.
How to calculate the price of gas purchased from the Russians
The application price may increase significantly in April for two reasons:
- from April, the calculation formula changes;
- natural gas became more expensive on the spot market (daily quotation on the stock exchange).
According to the current contract, the price of natural gas purchased by Moldovagaz from Gazprom is calculated differently in winter and summer.
Between November 1st and April 1st, when consumption is high, this price is determined in proportion of 70% of the quotation of oil on international stock exchanges and in proportion of 30% of the quotation of natural gas on spot markets.
Between April 1 and November 1, the formula is reversed: 30% of the price is formed according to the quotation of oil on the stock exchanges, and 70% – according to the quotation of natural gas.
As natural gas became more expensive in the wake of the war in Ukraine, experts calculated, and the head of Moldovagaz confirmed to reporters that in April, the search price of Russian gas could exceed $ 1,000 per thousand cubic meters, compared to $ 547 in March.
Repeating the assurances given by the head of Moldovagaz, Deputy Prime Minister Spinu also said that there are no reasons for increases in domestic tariffs in April. “Even if we have a higher price increase, the tariff increase can be avoided thanks to the positive deviations from February and March,” Spinu said. In the two months, the price of gas was lower than expected.