EBRD shores up Moldova’s energy security

By Vanora Bennett

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  • EBRD lends €200 million to Moldova to purchase emergency gas supplies
  • Emergency finance part of a revolving loan to be on-lent to state-owned energy trader
  • Transaction to safeguard Moldova’s energy security  

The European Bank for Reconstruction and Development (EBRD) is lending €200 million to Moldova to purchase emergency gas supplies. The loan was approved by the EBRD’s Board of Directors today at an extraordinary Board meeting.

The commitment is part of a €300 million revolving loan approved this summer under the Bank’s €2 billion Resilience and Livelihoods Framework to support Ukraine and neighbouring affected countries. It aims to safeguard Moldova’s energy security and follows an earlier tranche of €100 million, which was on-lent to state-owned energy trader JSC Energocom to procure strategic gas reserves to diversify Moldova’s energy supply.

Moldova has been grappling with significant energy shortages amid record energy prices and supply disruptions due to the war on Ukraine. The country depends on Ukraine for its electricity imports and on Russia for gas.

The €200 million emergency tranche was designed to be used for emergency gas purchases in case of supply disruption under Moldova’s current five-year contract with Russian state-owned supplier Gazprom. It will help the government to replenish its gas reserves and will safeguard the basic needs and economic livelihoods of 2.7 million Moldovans and refugees from Ukraine.

“Moldova is facing one of the worst energy crises in Europe and, with winter at our doorstep, it’s essential that Moldovan citizens and Ukrainian refugees have access to an affordable, stable energy supply to heat their homes and keep the lights on,” said Matteo Patrone, Managing Director, Eastern Europe and the Caucasus. “This emergency facility will enable the government to buy gas and prevent disruption this winter, safeguarding access to vital energy services for Moldovans and Ukrainians.”

The EBRD is a leading institutional investor in Moldova and, to date, has invested more than €1.8 billion in the country through 158 projects.

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