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Gazprom 2008 gas price: Transdniestria pays more than Moldova
From January 1, 2008, Transdniestria will be paying more for gas supplies than neighboring Moldova. For the unrecognized country, Russia's Gazprom has set the price at $192 per thousand cubic meters of gas. Moldova, on the other side of the Dniester river, will pay two dollars less. 
Gazprom will charge Transdniestria $192 per thousand cubic meters of gas in 2008, while Moldova pays only $190 insteadTIRASPOL (Tiraspol Times) - From 2008, Transdniestria will be paying US$192 per each thousand cubic meters of Russian gas. Moldova will pay slightly less: US$190.
For both countries, the new rates represent increases over 2007's prices. They mark the transition of the pricing policy of Russia's Gazprom to a market-based format and away from subsidized gas deliveries at preferential prices to politically favored nations.
Moldova's new rate of 190 US dollars per a thousand cubic meters is a 11.8% price hike over 2007. This is two dollars less than the rate charged to Transdniestria, of $192 next year.
Depending on the dynamics of energy prices on international markets, both tariffs may be revised during the year, says Gennady Abashkin, Director General of local Gazprom subsidiary Moldovagaz.
In 2006, Gazprom agreed with Moldova that gas prices would be gradually growing so as to reach the average international market level by year 2011. This year, Moldova paid $170 per thousand cubic meters of gas. Moldova had initially expected to be paying $180 per thousand cubic meters for 2008, but the price was instead set at $190 due to the fast-imploding value of the U.S. dollar combined with strong overall commodity prices worldwide.
- Separate talks with Transdniestria
Gazprom negotiates prices and delivery terms separately with Transdniestria, in recognition of the fact that the 'de facto' independent country has no shared government with Moldova. On Monday this week, a meeting took place in Tiraspol between Transdniestria's President Igor Smirnov and Deputy Director of Gazprom's Gas Transportation and Storage Department Anatoly Podmyshalsky.
The presidential press office informed that Gazprom plans to increase its ownership stake of Moldovagaz. Established in 1999, the company JV Moldovagaz is majority-owned by the Russian Gazprom Concern (50% plus 1 share), the Moldovan government (35.33%), and the Transdniestrian government (13.44%). The remaining 1.22% of the company is in private hands, with shares distributed among a total of 1,705 individual shareholders.
According to Podmyshalsky, a debt-for-shares swap was discussed whereby the government will first turn Transdniestria's gas debt into a formal liability of PMR (the Pridnestrovian Moldavian Republic, Transdniestria's official name). After this step, Transdniestria will then be able to sell its shares in Moldovagaz in return for the value of its debt. President Igor Smirnov said that he was ready to help settle the issue.
According to information provided by Gazprom, debts related to Transdniestria now exceed $1.5 billion. Of this amount, less than half cover unpaid gas deliveries, while the rest is composed of interest and late payment penalties.
Most of the debt originated in the years between 1992 to 2006. From 2007, Transdniestria has been on a pay-as-you-go scheme, with gas deliveries paid on time as they are consumed.
See also:
» Transdniestria increase in gas fees to pay off huge debt
» PMR Govt dips into $14M of Gazprom debt
» Gazprom signs direct energy contract with PMR, bypassing Moldova
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The Speaker of Transdniestria's Parliament says that to attract foreign investments, more free market reforms are needed. 39 year old Yevgeny Shevchuk is a native-born Transdniestrian from Rybnitsa and head of the country's largest opposition party, Renewal. Since opening up the economy in 2001, Transdniestria's GNP has increased four-fold.
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