The Kremlin has urged Moldova to settle its outstanding debts with Russian energy company Gazprom (MCX:) as the two parties continue their dialogue, according to Kremlin spokesman Dmitry Peskov on Monday. This comes amid an ongoing energy crisis in Moldova, which has sparked protests due to rising gas and electricity prices.
Moldovan Prime Minister Dorin Rechan had previously stated on September 10 that he did not wish to pay what he referred to as “unreasonable” debts to Gazprom. The Russian company has firmly disagreed with these claims regarding the republic’s debt, emphasizing that the auditor’s report was not approved by the Supervisory Board of Moldovagaz, as required by the agreements between Gazprom and the Moldovan government.
Gazprom, a prominent player in the Oil, Gas and consumable Fuels industry as per InvestingPro Tips, has an impressive gross profit margin of 76.02% according to InvestingPro Data. The company, with a market cap of 39800.09M USD, is trading at a low earnings multiple of 3.32, making it an attractive investment despite the current controversies.
Moldova has completely switched to gas supplies from the European Union, according to Viktor Parlikov, the country’s Energy Minister. He justified this shift by citing more favorable pricing offered by European suppliers. Responding to this, Peskov noted that while spot market prices might currently be cheaper than piped gas, they are notoriously volatile and could become significantly more expensive in the future.
Peskov further noted that it’s likely that Moldova is still essentially buying Russian gas on the European market. He stressed that calculations should be made based on average prices over time, rather than relying solely on current spot market rates.
Since October last year, Gazprom has reduced its daily supply volume to Moldova by 30%, citing technical problems associated with limited transit through Ukraine. However, Chisinau has blamed Gazprom for the crisis. In December last year, Moldova completely transitioned to purchasing fuel from European suppliers, while Russian gas is used to generate electricity in the unrecognized republic of Transnistria.
InvestingPro Tips also highlights that Gazprom’s liquid assets exceed short-term obligations, suggesting a strong financial position. For those interested in more insights like these, they can be found at InvestingPro. The platform offers a multitude of additional tips, providing a comprehensive analysis of companies like Gazprom.
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