October 17 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) said on Tuesday that together with Norway it is extending a financing package of 199 million euro ($209.7 million) to Moldova to strengthen the country's energy security in the context of Russia's war on Ukraine.
The package includes a loan of 165 million euro from the EBRD and a grant of 34 million euro from Norway, the bank said in a press release.
This takes the total amount of financing provided by the EBRD to Moldova for gas imports since the beginning of the war in neighbouring Ukraine to some 500 million euro.
The funds will be used by Moldova's state-owned energy trader Energocom to procure gas on European Union hubs. The loan was signed by Mark Bowman, EBRD Vice President for Policy and Partnerships, and Victor Parlicov, Moldova’s minister of energy.
Moldova has historically relied on Russian gas imports from Gazprom, but this supply is at risk due to the Ukraine war. To reduce dependence on Russian gas, Moldova is increasing gas imports from Europe, aiming to reach at least 75% of gas purchases from European sources by next winter, the EBRD noted.
The Moldovan government has authorized Energocom to procure gas from alternative sources on the spot market, primarily through tenders on the EU and Ukrainian borders, the bank added.
($=0.948013 euro)