On 13-14 April, Gazprom’s delegation headed by Alexander Ryazanov, Deputy Chairman of Gazprom’s Management Committee, paid a visit to the city of Chisinau (the Republic of Moldova).

Gazprom’s delegation participated in a meeting of Moldovagaz’s Supervisory Council. The meeting was presided by Alexander Ryazanov, who is the Chairman of Moldovagaz’s Supervisory Council.

The meeting addressed Moldovagaz’s operating results for 2003 and budget for 2004.

In 2003, for the 1st time within several years, Moldovagaz gained net profits worth over USD 10 million. However, the company still faces difficulties in collecting the consumers’ gas payments. Thus, the present-day gas payments in the Republic of Moldova average 85.11% and the same indices in the Transdnestr Republic account for 66.82%.

The issue of Moldovagaz’s debt to Gazprom for current and previous gas deliveries still remains resolved. As of 1 April 2004, the total gas indebtedness of the Republic of Moldova and the Transdnestr region to Gazprom accounted for USD 308.35 million and USD 959.89 million (penalties apply), respectively.

A. Ryazanov commissioned Moldovagaz’s executive leadership to resolve in a month’s period the issue of fully paying for current gas deliveries and devising the scheme to redeem the remaining gas debt. One of the possible options for Moldovagaz to repay part of its debt is to hand over local industrial facilities to Gazprom with the view of selling those to potential buyers.

The Supervisory Council members approved the date of Moldovagaz’s annual General Shareholders’ Meeting to be held in Chisinau on 25 May 2004.

The next Supervisory Council meetings is planned to be held in Moscow on 28 April 2004.

Based on the Supervisory Council meeting outcomes, Alexander Ryazanov held a working meeting with Vasily Tarlev, Prime Minister of the Republic of Moldova.

The parties discussed the results of and prospects for Moldovagaz’s business operations and examined the issue of devising schemes aimed to redeem the company’s gas debt to Gazprom, in particular, by regulating Moldovagaz’s taxation system in setting the gas purchase and consumer gas pricing.

A. Ryazanov and V. Tarlev also agreed to elaborate a plan joint of activities to raise the Moldovan consumers’ gas payment levels up to 100% and to re-consider the issue of making the republican gas tariff rate economically expedient, based on the results achieved in the 1st half of 2004.

Reference:

Gazprom owns a 50% stake in the Moldovagaz company. The rest are distributed among the Government of the Republic of Moldova (35.3%), Transdnestr Republic (13.44%) and individual shareholders (1.23%).

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