Why does gas cost 3 lei in Ukraine, and 26 lei in the Republic of Moldova? Explanation of the Ukrainian ambassador to Chisinau

Ukraine is willing to supply natural gas to the Republic of Moldova, after the authorities in Kiev unblocked the exports of surplus gas, allowing the sale of up to 15% of the monthly extracted volume. The Ukrainian Ambassador to Chisinau, Paun Rogovei, claims that the two countries could identify a delivery formula advantageous for Moldovan consumers.

Referring to the price of gas, the diplomat explained that the transportation distance influences the final cost, and the geographical proximity between the two states could be an advantage. He also suggested that the close relations between Chisinau and Kiev could matter in establishing commercial conditions.

"Yes, it was one of the main topics of the discussions in Kiev. Indeed, for the first time, during these almost five years of war, Ukraine has unlocked the exports of surplus gas. And this is 15% of the amount of natural gas extracted monthly. It is a considerable volume. Ukraine has shown all its willingness and openness to cooperate with the Republic of Moldova, including supplying it with some quantities of gas. We have an extraordinary interaction in the energy field between the Ministries of Energy," the ambassador said during the "Rezumat" show on Realitatea TV.

"As the situation develops, we will be ready to help the Republic of Moldova at this critical moment. Of course, gas brought from several thousand kilometers is much more expensive than that brought from several hundred kilometers. In addition, Ukraine is flexible, taking into account the fact that the Republic of Moldova is a friendly state. A state that has stood by us and stands by us in this difficult situation that Ukraine is in," the diplomat said.

Asked whether natural gas deliveries from Ukraine could begin even in the current cold season, Rogovei appreciated the efforts of the Ministry of Energy in Chisinau to diversify supply sources and reiterated Ukraine's willingness to support the Republic of Moldova.

"You have managed to diversify the sources of energy resources, including gas. I know that you also have a very good collaboration with Romania. So there is absolutely no reason for major concerns. Of course, they will always be provoked by pro-Russian circles that are interested in upsetting public opinion and civil society. We must be calm, look and approach reality as it is. Certainly, both Ukraine and the Republic of Moldova will face many trials. Ukraine has five years of experience in facing much more serious trials and, when necessary, Ukraine will definitely extend a helping hand to the Republic of Moldova," the official added.

Păun Rogovei also explained why natural gas is cheaper in Ukraine, where the price quoted in the broadcast is approximately 3 Moldovan lei, compared to 26 lei in the Republic of Moldova.

"It's very clear, Ukraine extracts gas. We have this very developed industry, we have natural gas deposits. That's why it's even cheaper," the ambassador explained.

The Republic of Moldova has acquired two million cubic meters of natural gas from Ukraine, at a price lower than the spot market price. Prime Minister Vasile Tofan announced that the mechanism has been successfully tested, and the authorities intend to purchase larger volumes to reduce procurement costs and, eventually, tariffs for consumers. The statements were made on Thursday, October 29, on the sidelines of the "Construim Moldova" event.