EBRD lends Moldova 400 million euros for energy security
The European Bank for Reconstruction and Development announced on Tuesday a 400 million euro loan ($468 million) to the state-owned energy company Energocom of Moldova for purchasing gas and electricity on European markets in order to increase energy security for the country.
This follows the decision of Russian energy giant Gazprom, which halted gas deliveries to Moldova in this year due to unpaid debt.
The new package consists a 300 million euro senior working capital loan to Energocom for energy purchases, and 100 millions euros of guarantees that will be issued by the EBRD to eligible EU suppliers.
It said: "These guarantees will be provided by the Republic of Moldova, and will allow the company to purchase natural gas and electricity, ensuring a stable supply of energy throughout the country."
After the full-scale Russian invasion of Ukraine, this nation of 2,5 million people in southeast Europe has begun to diversify its gas supply.
Transdniestria, a pro-Russian region that broke away from Ukraine after the invasion of its territory, continued to use Russian Gas after the invasion. However, it is now facing an energy crisis after Gazprom stopped delivering gas on January 1, after Ukraine refused a transit agreement to be renewed.
It said that the EBRD had invested over 2.5 billion euros into Moldova through 183 different projects. The EBRD has invested more than 2.5 billion euros in Moldova through 183 projects, it said.
(source: Reuters)
