Moldova introduces state of emergency in energy sector

Moldova's parliament on Thursday approved the government's request to introduce a state of emergency in the energy sector over difficulties with gas payments to Russia's Gazprom.

Prime Minister Natalia Gavrilita said on Wednesday the cabinet needed to expand its powers to manage the energy sector, such as switching gas supplies from industry to households and using budget funds to pay for gas. "The introduction of a state of emergency is necessary for the energy security of the state, for all citizens of Moldova to spend the winter without problems and have gas," Gavrilita told the parliament.

The new regime will last 60 days. Gavrilita said the move would allow the government to defer VAT payments for the Moldovagaz company and transfer funds from the state budget to the company which had been intended to compensate the population for high tariffs.

The government said on Wednesday that Gazprom rejected Moldova's request to reschedule its January gas payment and the small ex-Soviet republic has to find $63 million for the supply. Gavrilita said late on Wednesday Moldova would pay its January gas advance to Gazprom on time.

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