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Western energy investment in Moldova depends on election result
Energy majors are lining up to obtain hydrocarbon exploration projects in Moldova but the outcome is dependent on the result of the upcoming presidential election, according to a former Romanian energy minister EurActiv Romania reports.
European and American companies are negotiating the purchase of Moldovan energy companies and want to start oil and gas exploration projects as soon as possible.
But this cooperation is dependent on the outcome of the Eastern European country’s presidential runoff election, claimed Romania’s former Minister of Energy, R?zvan Nicolescu.
“There are more and more signals that energy cooperation with the Republic of Moldova, with Romanian, European and American companies is on the up and is evolving positively,” said Nicolescu at Romania’s annual conference of electricity suppliers.
He added that foreign companies have an interest in “taking over the port terminal of Giurgiule?ti” and “negotiating electricity distribution in Moldova”, as well as buying up existing energy companies.
However, he insisted that this is all dependent on the final result of important elections in Chi?in?u, the Moldovan capital.
Nicolescu, now a consultant with Deloitte, said that he “expects things to continue developing positively, for investments to be made and for jobs to be created in Moldova. On the condition that Moldovan citizens elect a leader who wants these investments to happen and to be closer to the West.”
Moldova is currently holding its first direct presidential since the mid-90s and its citizens will be asked to vote again on 13 November after pro-Russian candidate Igor Dodon narrowly failed to gain a majority over his pro-European rival, Maia Sandu.
The former energy minister also claimed that the Ia?i-Ungheni pipeline, a project supported by European money, will soon be extended to the Moldovan capital. “I pride myself that in 2014 (when Nicolescu was in office), the first phase of the Ia?i-Ungheni gas interconnector received investment,” Nicolescu said.
In early October, President of the Competition Council Bogdan Chiri?oiu ruled that aid given to state-owned gas company Transgaz was in line with the rules and did not constitute illegal state aid. In 2015, Transgaz was given roughly €18 million for the pipeline, which was financed by the Romania-Moldova Cross-Border Cooperation Programme.