CHISINAU (Reuters) -The European Bank for Reconstruction and Development announced a 400-million-euro ($468-million) loan on Tuesday to Moldovan state-owned energy trader Energocom for buying gas and
EBRD Provides 400 Million Euros Loan to Boost Moldova's Energy Security
CHISINAU (Reuters) -The European Bank for Reconstruction and Development announced a 400-million-euro ($468-million) loan on Tuesday to Moldovan state-owned energy trader Energocom for buying gas and electricity reserves on European markets to boost the country's energy security.
The move follows a decision by Russian energy company Gazprom to halt gas deliveries to Moldova this year, citing unpaid debt.
The new package consists of a 300-million-euro senior working capital loan for energy purchases and 100 million euros in guarantees to be issued by the EBRD on behalf of Energocom to eligible EU suppliers, the EBRD said.
"These will be guaranteed by the Republic of Moldova and will enable the company to acquire natural gas and electricity ensuring continuing stable energy supply nationwide," it said.
The southeast European nation of about 2.5 million people has been dependent on Russian gas for decades but has moved to diversify supply following Moscow's full-scale invasion of Ukraine.
The pro-Russian breakaway region Transdniestria continued to use Russian gas after the invasion, but has faced an energy crisis since Gazprom stopped deliveries on January 1 after Ukraine refused to renew a transit agreement.
The EBRD has invested more than 2.5 billion euros in Moldova through 183 projects, it said.
($1 = 0.8552 euros)
(Reporting by Alexander Tanas, Writing by Anna Pruchnicka, Editing by Timothy Heritage)
