| Author (Person) | Beatty, Andrew |
|---|---|
| Series Title | European Voice |
| Series Details | Vol.12, No.2, 19.1.06 |
| Publication Date | 19/01/2006 |
| Content Type | News |
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By Andrew Beatty Date: 19/01/06 The Russian state-controlled energy giant Gazprom this week tightened its grip on supply routes to the EU, after it moved closer to outright ownership of Moldova's leading energy firm, Moldovagaz. After a 16-day stand-off, which left Moldova without gas supplies, Gazprom agreed on Monday (16 January) to turn the taps back on temporarily. The Moldovan government then agreed to give Gazprom a 13% share in national energy firm Moldovagaz. The deal would extend Gazprom's majority stake in the company to more than 63%. Analysts say the move is part of a broader drive by Gazprom to take control of the pipelines which deliver its gas to Western Europe. Earlier this month Ukraine also came under intense pressure to cede control of its pipeline network. Fearing a dramatic price hike ahead of March elections, the Ukrainian government agreed to let RosUkrEnergo, a firm in which Gazprom has a controlling interest, control supplies from Russia and Central Asia. Some 90% of Russian gas to Europe passes through the country. "Gazprom is becoming more and more commercial and it wants to secure stable gas supplies to Europe," said Pavel Kushmir, oil and gas analyst for the Moscow-based United Financial Group.Moldova has become the latest battle ground. "[Gazprom] wants 75% but obviously the Moldovan government does not want to give up its blocking minority. From 75% they would be able to convince the government that the rest should be transferred to Gazprom," Kushmir added. The relinquished shares are likely to be those held by the authorities of Transdniestria - a breakaway region in the east of Moldova, which has close ties to Moscow. This would scupper hopes that Moldovan state control over Moldovagaz would be increased as a result of improved relations with Transdniestria. The Moldovan ambassador to the EU Eugen Carpov admitted that giving up the shares was not Moldova's first option. "It is a very, very difficult situation for the Republic of Moldova," he said, urging the EU to become more involved in the dispute. Under the interim agreement, which expires in April, Moldova agreed to pay $110 for 1,000 cubic metres of gas, up from $80 in 2005. The final deal could also see Gazprom scrap some of the debt the Transdniestrian authorities have run up with the company, but for which Moldova could be held liable. This debt totals around 570 million euro. With temperatures forecast to dip to -20ûC in Moldova later this week and supplies to soon-to-be EU member Bulgaria under threat, many in the EU praised the agreement. But Estonian MEP Marianne Mikko, head of the Parliamentary delegation to Moldova said Gazprom "held Moldova hostage at the coldest time of the year". Article reports on a dispute between the Republic of Moldova and the Russian state-controlled energy giant Gazprom. After a 16-day stand-off, which left Moldova without gas supplies, Gazprom agreed on 16 January 2006 to turn the taps back on temporarily in exchange for increased control over Moldova's leading energy firm, Moldovagaz. |
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| Source Link | Link to Main Source http://www.european-voice.com/ |
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| Subject Categories | Energy |
| Countries / Regions | Moldova, Russia, Ukraine |
