Gazprom and Moldova have agreed to extend the contract for natural gas

The Russian state-owned company Gazprom and the Republic of Moldova have agreed to extend the supply contract for natural gas by five years after a bitter dispute. As a spokesman for the Moldovan Ministry of Foreign Affairs announced, the parties agreed on prices and a "dialogue on debt repayment" from previous gas deliveries. Gazprom said that the contract was extended effective November 1st on "mutually beneficial terms". No information was given about the exact prices. The Moldovan Ministry of Infrastructure stated that the pricing conditions were based on a proposal from the Moldovan side. It had been agreed that the arrears would be assessed jointly and a plan to pay off the debt would be negotiated. Russia had threatened the Republic of Moldova with a delivery stop if it did not pay a higher price for natural gas. The country, located between Ukraine and Romania, recently declared a state of emergency after Gazprom raised prices from $ 550 per thousand cubic meters to $ 790. The EU then promised the former Soviet republic aid amounting to 60 million euros. Brussels and Chisinau had already signed an association agreement in 2014. In Brussels, it was suspected that the Kremlin was using its power as a gas supplier to bring Moldova back under its control. The government in Moscow, however, stated that the dispute was "absolutely commercial" in nature. Moldova has so far covered all of its gas requirements with Russian supplies. After the escalation with Moscow, the government in Chisinau announced that it had signed a gas supply contract with the Polish state energy company PGNIG. In the EU, too, gas prices had risen sharply and were the cause of disagreements with Moscow. However, prices recently fell again after Russian President Vladimir Putin ordered Gazprom to increase gas supplies to Europe in early November.