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Russia says to halt gas exports to Moldova from Jan. 1

by Reuters

MOSCOW - CHISINAU Dec 29, 2024 - 9:34 am GMT+3
An employee works at the Chisinau-1 gas distribution plant of Moldovatransgaz energy company in Chisinau, Moldova, March 4, 2023. (Reuters Photo)
An employee works at the Chisinau-1 gas distribution plant of Moldovatransgaz energy company in Chisinau, Moldova, March 4, 2023. (Reuters Photo)
by Reuters Dec 29, 2024 9:34 am

Russian energy giant Gazprom announced on Saturday it would halt gas exports to Moldova from 5 a.m. GMT on Jan. 1 due to an unpaid debt by Moldova, which is bracing for severe power cuts.

It said the company reserved the right to take any action, including terminating the supply contract with Moldova.

Russia supplies Moldova with about 2 billion cubic meters (bcm) of gas per year, which is piped via Ukraine to the breakaway region of Transdniestria, where it is used to generate cheap power that is sold to government-controlled parts of Moldova.

Moldovan Prime Minister Dorin Recean condemned the Russian decision, which is a precursor to a total shutdown of Russian gas exports via Ukraine and to Europe, where it flows further to Slovakia, Austria, Hungary and Italy, once a current transit deal with Ukraine expires on Dec. 31.

Moldova will be hit the hardest by the shutdown.

"This decision confirms once again the intention of the Kremlin to leave the inhabitants of the Transdniestrian region without light and heat in the middle of the winter," Recean wrote on Facebook, accusing Russia of using energy as a political weapon.

Moscow has repeatedly dismissed those allegations.

Difference over debt

Russia, which is critical of Moldova's West-leaning central government, has said Moldova should pay a debt on past supplies.

According to Russian calculations, the debt is $709 million, while Moldova has estimated it at $8.6 million.

Gazprom said previously that it wants Moldova to pay the debt before it starts to pump gas into the country via alternative routes.

Transdniestria and the government in Chisinau agreed that all Russian gas received by Moldova would flow to the breakaway region, which traditionally does not pay for fuel.

Without gas supplies, the power-generating plant could stop working and Moldova and Transdniestria would face hourslong blackouts similar to those experienced by Ukraine due to Russia's attacks on its energy infrastructure during their war.

The government of Transdniestria told businesses that, starting on Saturday, gas supplies would start to be switched off to commercial entities that were not considered critical.

But it was said that supplies of gas, heating and hot water to households would continue as usual until Jan. 1.

Recean said Moldova had diversified sources of gas supply "in order to reduce dependence on a single supplier."

"Our country is prepared to handle any situation that arises following the Kremlin's decision," he added.

Moldova's population of 2.5 million has been preparing for long power cuts since Ukraine's government said it would not extend its transit contract with Gazprom.

Moldova and Transdniestria have both declared states of emergency over the threat of disrupted gas supplies, and Moldova said on Friday it would curb power exports and introduce measures to reduce consumption by at least a third from Jan. 1.

Moldovan President Maia Sandu has accused Gazprom of provoking an energy crisis, saying it was refusing to supply gas through an alternative route.

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  • Last Update: Dec 29, 2024 12:33 pm
    KEYWORDS
    energy market gas exports gas russia moldova gazprom
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