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    EBRD lends Moldova €300mn for gas purchases

Summary

The loan is intended to cover up to a fifth of the country's planned gas imports this year.

by: NGW

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EBRD lends Moldova €300mn for gas purchases

The European Bank for Reconstruction and Development (EBRD) announced on June 23 it was providing a €300mn ($318mn) loan to Moldova to fund gas purchases.

The loan will enable Moldovan energy trader Energocom to purchase gas at European hubs, the EBRD said. It is intended to cover up to a fifth of the country's planned gas imports this year. 

Moldova currently gets all its gas from Russia, under a contract that runs until 2026. But there are growing concerns that this supply could be cut, given disruptions in Russian flow to other European countries.

Moldova is technically able to obtain gas from Romania via an interconnector that was commissioned last year. But it has continued to rely on Russian gas because it is cheaper than spot volumes.

“These EBRD projects give a lifeline for Moldova, both by helping to diversify its supply sources and by making it possible for the country to import 100% of its energy needs from the EU via the interconnector in summer and up to 60% in winter,” said the EBRD's managing director for east Europe and the Caucasus, Matteo Patrone, said.