According to Reuters’ article published on October 20, 2022, Moldova's pro-Western government will lend gas utility Moldovagaz 1.05 billion lei ($54 million) so it can pay Russian gas supplier Gazprom (GAZP.MM) for supplies, Deputy Prime Minister Andrei Spinu said on Wednesday.
In early October, Gazprom said it could shut off gas to Moldova completely unless all contractual obligations were met by Oct. 29, including settlement of a long-standing debt of about $709 million for past supplies.
Spinu, writing on Telegram, said the loan would allow Moldovagaz to pay for all the supplies used in September and meet an advance payment for October. The loan will bear an interest rate of 21.5% and is due to be repaid on May 1, 2023.
Moldova, wedged between Ukraine and Romania, is reliant on Russian gas and now pays for 50% of its supplies in advance with the rest settled later.
Gas prices have soared this year, in part because of the conflict in Ukraine.
