Moldova Energy Deal Raises Concerns of Russian Pressure

A sudden decision taken by Moldova's Ministry of Energy to modify a recent energy contract awarded through a public tender to a Ukrainian company and introduce a new clause allowing the government to buy electricity from a Russian-owned plant in the breakaway region of Transnistria has raised concerns over lack of transparency of the government in Chisinau and its vulnerability to Russian pressure.

The initial deal was signed at the end of March by Moldova's pro-European government to buy electricity from Ukrainian DTEK Trading, owned by Ukrainian billionaire Rinat Ahmetov.

The deal replaced its usual provider, the Russian Inter Rao-operated plant located in Transnistria.

The Moldovan government said the Ukrainian provider had offered a better price at the public tender than the Inter Rao power plant in Cuciurgan, Transnistria.

The decision was interpreted as a political move in Tiraspol, capital of the separatist region, where the government stood to lose $100 million per year, the price Moldova paid for electricity provided by the plant in Cuciurgan, Transnistria's main contributor to the economy.

However, two months later, the Moldovan government mysteriously changed its mind and decided to buy 70 per cent of Moldova's electricity from Inter Rao.

The Russian company disclosed the deal to the Russian media, but only after lack of transparency accusations from the media and opposition politicians, Energocom, Moldova's state-owned energy distributor, explained that new negotiations had taken place and Inter Rao offered a better price than the Ukrainian company.

The EU Delegation to Moldova and the EU High Level Adviser for Energy Policy, who had taken part in the March tender, asked the Moldovan government for explanations...

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