EBRD to give loan of up to 300 mln euros to Moldova for buying, storing gas in Ukraine or Romania

MOSCOW. June 24 (Interfax) - The European Bank for Reconstruction and Development (EBRD) will give a three-year revolving loan to Moldova in the amount of up to 300 million euros, which the Energocom company will be using to finance emergency gas supply and formation of strategic reserves to help diversify gas imports.

"There will be two tranches of the loan: (i) an emergency tranche of up to 200 million euros to be spent in the event of gas supply disruptions, and (ii) a diversification and storage tranche of up to 100 million euros to be spent on storing a strategic gas reserve of Moldova either in Romania or in Ukraine, which will help Moldova avoid seasonal price hikes and diversify supply sources and routes," Ukrainian media outlets said with the reference to the bank website on Friday.

The media said that the EBRD Board of Directors approved the project on June 22.

According to the bank, the project aims to strengthen the energy security of Moldova with emergency and long-term lending mechanisms to reduce a risk of supply disruption and to retain access to vital energy services, store strategic gas reserves and promote diversification of natural gas suppliers and supply routes.

The bank said that was necessary to safeguard the basic needs and economic livelihoods of the local population and Ukrainian refugees.

Energocom is a 100% state enterprise established by the Moldovan government in 2005 to import electricity and to supply power to the domestic market. In October 2021, the government appointed Energocom as an alternate gas supplier helping reduce Moldova's dependence on a sole supplier (Gazprom) with gas procurements at EU hubs.

Earlier in June, the EBRD approved a 300-million euro allotment to Naftogaz of Ukraine, including 50 million euros currently available for emergency gas purchases.