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Ukraine threatens to cut off energy supply to Moldova

02 November 2007

Ukraine might halt supplying power to the countries (including Moldova) that do not accept that the price they pay for it be not lower than the internal prices in Ukraine, Ukrainian Fuel and Energy Minister Yuriy Boyko said on 31 October.

 
“Presently, we are holding negotiations with the Moldovan partners. Our position is that power cannot be sold for a price lower than the one on the internal market. Those who agree with it will receive electricity,” Boyko said.

The Ukrainian minister’s statement comes against the backdrop of Ukraine’s decision to cut off power supplies to Poland, decision the Ukrainian power operator, Ukrinterenergo abided by.

The issue emerged as the Ukrainian National Commission for Energy Regulation had prohibited the sale of electric energy for prices lower than the ones on the Ukrainian wholesale market. Thus, the average power price on the Ukrainian wholesale market was of 3.97 US cents/kWh in September 2007, while energy exported to Poland was bought for 2.85 US cents/kWh.

At the same time, starting from 1 July 2007, power has been exported to Moldova for 3.0 cents/kWh, with the price increasing monthly by 0.1 cents, so that it should reach the threshold of 3.4 cents by 1 November 2007.

Moldovan Industry and Infrastructure Minister Vladimir Antosii has said that Ukraine cannot stop providing Moldova with electric energy, because if so then a part of the Ukrainian Odessa region will face a blackout.

On the other hand, Antosii said, Ukraine pays nothing for the power transportation services provided by the Moldovan state-owned enterprise, Moldelectrica. According to the minister, negotiations with Ukraine on various issues related to the energy sector are conducted on a permanent basis.

It is worth mentioning that in the first nine months of 2007, Ukraine supplied 2143.8 million kWh, which is more by 165.5 million kWh or by 8.4 per cent against the same period of 2006. Thus, imports from Ukraine cover about 75 per cent of Moldova’s internal needs.




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