Moldova Lacks Own Funds to Offset Soaring Gas Costs to Consumers, Will Use Western Grants

CHISINAU (Sputnik) - Moldova will tap into the grants provided by Western countries to fund gas cost compensations for households, the country's Finance Minister Dumitru Budianschi said.

Moldova is experiencing a grave economic and energy crisis because of rising energy prices and hiking inflation. The authorities of the republic are making attempts to stock up on firewood, coal and fuel oil. In early August, the National Agency for Energy Regulation (ANRE) raised gas tariffs for consumers from 18.62 to 23 Moldovan lei per cubic meter (from $0.96 to 1.2$ per 35.3 cubic feet).

"The state partially covers the cost of gas for domestic consumers. We dispose of 75 million euros [$76.1 million] provided by the European Union. The EU has insisted that these funds are allocated to support citizens amid the energy crisis. We have a 40 million euro grant from the German government, which is yet to be received. We are negotiating a grant totaling 10 million euros with the Romanian government," Budianschi told the Rlive broadcaster on Friday.

In late August, the Moldovan government approved a contingency plan to stave off a possible energy crisis if gas supplies from Russia are cut or shut down altogether. The plan lays out three possible scenarios: if gas deliveries are slashed by 35%, 50% and 100%. Moldovan deputy Prime Minister Andrei Spinu noted that the government would reduce gas consumption by at least 15% in winter, coupled with Chisinau's efforts to find alternative energy sources.