Olga Ursu, Member of the Parliament of the Republic of Moldova: Over 6 billion lei in additional pressure on the budget for energy measures

The Republic of Moldova could need more than 6 billion lei to purchase and store natural gas during the cold season, amid possible liquidity problems at Energocom and the need to build up stocks intended for the Transnistrian region

Olga Ursu, Member of the Parliament of the Republic of Moldova and a member of the Economy, Budget and Finance Committee, is asking the Government to explain where these resources will come from and what impact they could have on the state budget, compensation schemes and the economy.

During a meeting of the Economy, Budget and Finance Committee, lawmakers were informed about a possible liquidity pressure of more than 3.5 billion lei needed for the purchase and storage of natural gas.

According to Olga Ursu, this amount could be supplemented by approximately 2.3 billion lei for gas stocks intended for the Transnistrian region. Under these circumstances, the cumulative financial requirement approaches 6 billion lei, without including potential additional costs generated by tariff increases and compensation measures for consumers.

“How and where are we going to find more than 6 billion lei in the budget for these measures?”, Olga Ursu asked.

Energocom could need budget support

One of the main issues raised by the MP concerns the liquidity of Energocom, the company responsible for gas procurement for the Republic of Moldova.

The Prime Minister has acknowledged that “liquidity gaps” could occur during the cold season, and that Energocom could need financial support from the state budget.

Such a situation could arise when the company needs to mobilize significant amounts of money quickly for the purchase and storage of natural gas, while the recovery of these funds through supply and payment mechanisms takes place later.

According to the explanations provided by the Prime Minister, the possibility of such situations occurring is one of the reasons why the Government is seeking the additional instruments provided by the declaration of a state of emergency.

For the budget of the Republic of Moldova, however, this raises the question of the specific source of financing and how potential needs arising at Energocom will be reflected in public expenditure.

Another 2.3 billion lei for stocks intended for the Transnistrian region

A separate component of the financial requirement mentioned by Olga Ursu concerns gas stocks intended for the Transnistrian region.

The MP estimates that approximately 2.3 billion lei could be needed for these stocks.

In her view, the financing mechanism for these costs and their potential impact on public finances need to be clarified.

Thus, the financial requirements for the cold season include both the purchase of gas for consumers on the right bank of the Dniester and the creation of reserves intended for the Transnistrian region.

Possible additional costs for compensation

Olga Ursu also requested explanations regarding potential additional costs for compensation schemes provided to the population.

The question comes amid Termoelectrica’s request for a tariff increase, which could put additional pressure on consumers and, depending on the authorities’ decisions, on compensation mechanisms.

The MP therefore raised the issue of the cumulative impact on the budget of several measures: supporting Energocom’s liquidity, purchasing and storing natural gas, creating reserves for the Transnistrian region and potentially covering the costs of protecting consumers from higher tariffs.

Why are temporary fiscal measures not being used?

During the discussions, Olga Ursu also addressed the possibility of using fiscal instruments to reduce pressure on the population and the economy.

The MP asked why the Government is not considering temporary fiscal measures, such as reducing VAT or excise duties, as several European Union states have done at various times to limit the impact of rising energy costs.

Such an approach could temporarily reduce the tax burden on consumers and companies, while at the same time reducing certain revenues collected by the state budget.

The issue raised by the MP therefore concerns both the level of public expenditure and the Government’s options for distributing the costs generated by the energy situation.

More than 6 billion lei and questions about the source of financing

The figures presented by Olga Ursu indicate a potential financial pressure of more than 3.5 billion lei for the purchase and storage of natural gas, to which approximately 2.3 billion lei for stocks intended for the Transnistrian region could be added.

Potential costs related to compensation schemes and other interventions required in the energy sector could come on top of these amounts.

In this context, the question raised by Olga Ursu, Member of the Parliament of the Republic of Moldova and a member of the Economy, Budget and Finance Committee, directly concerns how the state will cover these needs and what their impact will be on public finances.

“How and where are we going to find more than 6 billion lei in the budget for these measures?” is essentially the question concerning the source of the funds that will have to be mobilized to ensure the Republic of Moldova’s energy security during the cold season and to manage potential financial imbalances in the sector.