Moldovagaz repays loan obtained from Energocom in autumn for settlements with Gazprom

CHISINAU. April 13 (Interfax) - Moldovagaz has completed the repayment of principal debt on a loan of 1.05 billion, or about $58 million at the current rate, taken out from the state-owned from the state enterprise Energocom last autumn, the Energocom press service said.

Moldovagaz paid Energocom a first 600 million lei of this amount in the middle of March. "Full payment of the loan must be made by the end of April," Vadim Ceban, the head of Moldovagaz, said on Telegram at the time.

Moldovagaz received the loan urgently from Energocom in order to have time to pay Russia's Gazprom 50% of the advance payment for the used gas by October 20, 2022. The gas contract's terms stipulate that Moldovagaz must by the 20th of each month remit full payment for natural gas consumed during the previous month, and 50% of the payment for contracted gas for the current month.

In the autumn of 2022, a situation arose where Moldovagaz, due to large tariff deviations of 4.5 billion lei, was unable to pay. To avoid breach of contract, the company turned to Energocom, which received funds from the state budget to increase its capital

Energocom received the Moldovan gas transmission system as collateral for the loan. Moldovagaz had until May 1, 2023 to repay the loan.

Moldovagaz still has to pay 80 million lei interest on the loan to Energocom.