European country makes Russian gas payment

Gas distributor Moldovagaz announced on Monday that it has paid in full for August supplies of Russian natural gas to Moldova.

“Today JSC Moldovagaz transferred $9.67 million to PJSC Gazprom. Thus, the company fully paid for the August deliveries of natural gas to the republic,” the company’s board chairman, Vadim Cheban, wrote on Telegram.

He added that together with the government, Moldovagaz, which is majority owned by Russian energy giant Gazprom, is now working to ensure advance payment for September deliveries.

Moldova, a former Soviet republic of 2.6 million people sandwiched between Ukraine and Romania, relies heavily on Russian gas. Last October, Gazprom and Moldovagaz extended their long-term gas supply agreement for a further five years until September 2026. However, Moldovagaz has been struggling to meet its payment commitments to the Russian supplier since prices under the contract rose sharply this year.

Earlier this month, Moldova’s Prime Minister Natalia Gavrilita warned that the country’s economy may face the double shock of a Russian gas cutoff and “extraordinarily high” energy prices as it braces for winter.

For more stories on economy & finance visit RT's business section