The deal to swap the country’s gas-distribution system to Russia for this winter’s gas supplies has fallen through. Moldova’s essentially bankrupt government had agreed to pay for past gas deliveries by turning 50 percent of the equity in the national distribution company over to Russia’s monopoly supplier Gazprom, along with US$90 million in newly issued 7.5 percent, seven-year bonds. Gazprom in turn was to resume full deliveries for the winter. But Moldova pulled out of the deal last week, offering instead to ship agricultural products to Russia and to Gazprom directly. Although Gazprom accepted similar terms from Belarus, it rejected the Moldovan proposal, leaving negotiations at an impasse.