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Image header Agence Europe
Europe Daily Bulletin No. 10688
Contents Publication in full By article 14 / 34
SECTORAL POLICIES / (ae) energy

Russia blackmails Moldova

Brussels, 13/09/2012 (Agence Europe) - Placed in an uncomfortable position by a Commission investigation on abuse of dominant position by the Russian gas giant Gazprom in several countries of central and eastern Europe, Russia is answering back, suggesting that Moldova could have a price reduction for gas supplies if it gave up its alignment with European legislation governing the internal energy market.

Since 1 May 2010, Moldova has been a member of the energy community, which groups the EU and its south-eastern European neighbours for creating an integrated energy market based on EU legislation relating to the liberalisation of the internal market. Moscow, however, now invites Moldova to leave that community if it wants to enjoy reduced prices for Russian gas supplies. “First of all, we propose that Moldova denounce the protocol on entering the Europe energy community agreement. This is a precondition for us to discuss the issue of gas price cuts and the relief of debt”, the Russian energy minister, Alexander Novak, explained on the sidelines of the visit by Moldovan Prime Minister Vlad Filat to Moscow, on Wednesday 12 September. Moldova, which is weighed down by the burden of its deficits, and which is 100% dependent on Russian gas, hopes to obtain a 30% reduction on its gas bill. Gazprom owns half of the country's pipelines, which carry Russian gas to the Baltic States.

Out of the 150 billion cubic metres of Russian gas destined for Europe each year, nearly 20 billion cubic metres travel across Moldova. The ultimatum given to Chisinau sets alarm bells ringing for the EU, whose supplies in Russian gas have been considerably disrupted in recent times during the gas price disputes between Russia and other transit countries, Ukraine and Belarus.

Russia is engaged in a power struggle with the Commission over the tariffs and conditions whereby its gas company Gazprom operates on the European market. The European Commission opened a formal investigation on Gazprom on 4 September, suspecting it of abuse of dominant position and price manipulation in several countries of central and eastern Europe, which are highly dependent on Russian gas supplies. (EH/transl.jl)

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EUROPEAN PARLIAMENT PLENARY
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BUSINESS NEWS NO 31