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Gas speculators could also buy shipments of gas at the Russian border and cut a separate deal to channel that supply through Ukraine. But those types of high-risk, short-term deals require a lot of upfront cash. Brokering those kinds of contracts could cost even more since the US levied new sanctions on Gazprom’s in-house bank this month, forcing anyone looking to buy a shipment of fuel from the Russian gas giant to first obtain special permission from Washington.
It’s unclear how the incoming Trump administration will handle a crisis analysts expect to continue past the Republican president-elect’s January 20 inauguration.
The Biden administration aggressively sanctioned Russia’s gas industry, successfully stymieing the Kremlin’s efforts to open a new facility to export liquefied natural gas — the version of the methane-based fuel super-chilled to a liquid form for more efficient transportation — in the Arctic. Despite a failed Democratic attempt to pause permitting on new US. LNG terminals that Republicans roundly criticised, Biden oversaw higher levels of oil and gas production than at any point during Trump’s previous term, vaulting the U.S. to the top spot as the world’s top LNG exporter.
Trump’s promise to swiftly bring about a peace deal between Moscow and Kyiv, and his public praise of Russian President Vladimir Putin, have been widely interpreted as a sign the Republican will champion the more radical, antiwar faction in his party that wants to end American support for arming Ukraine. By picking Senator Marco Rubio (Republican, Florida) as his nominee for secretary of state, however, Trump selected a potential top diplomat who “has consistently wanted to punish Russia for its aggression in Ukraine but has come to believe that a negotiated settlement between Moscow and Kyiv is the only realistic way to end the war,” according to a recent analysis by Harvard University’s Davis Center for Russian and Eurasian Studies.
One clear contrast in foreign policy may be the Trump administration’s expected skepticism of foreign aid without what Republicans deem a clear US interest.
Since the start of the war in Ukraine, the Biden administration has nearly doubled its aid to Moldova, giving close to $1 billion in funding for projects like the new transmission lines to Romania’s electrical grid. The money, part of a cumulative $2.6 billion Washington granted Chișinău over the past three decades, served the Biden White House’s dual goals of weaning Moldova off Russian energy and slashing carbon emissions by redirecting the country’s electricity demand from a gas plant to a nuclear-powered system in Romania, a NATO ally.
“If Moldova wants to save itself with a Trump administration coming on, it’s going to have to rethink its entire approach to many things – and soon.”
– Suriya Jayanti, energy expert and fellow at the Atlantic Council
Analysts say that Trump is likely to end that support.
“If Moldova wants to save itself with a Trump administration coming on, it’s going to have to rethink its entire approach to many things – and soon,” said Suriya Jayanti, a lawyer and former US diplomat who has worked on renewable and nuclear energy projects in Ukraine and Moldova.
“With Moldova, I don’t see what the clear US interest is from a Trump White House perspective,” she added. “The Russia-is-pure-evil logic doesn’t seem to hold in his world, and that was the only real logic to supporting Moldova, especially to the extent we have been.”
Moldova is now “preparing for difficult times,” said Tatiana Mitrova, a research fellow at Columbia’s Center on Global Energy Policy who coauthored the report this summer on the barriers to replacing Russian pipeline gas with fuel from Azerbaijan.
Moldovagaz — the country’s monopoly gas utility, which is a joint venture between Gazprom, the Moldovan government and the Transnistrian administration — asked regulators for permission this week to hike consumer natural gas prices by 40% to raise money for what are expected to be more expensive supply contracts.
But those deals would likely only secure more gas for Moldova’s pipeline network — not for Transnistria or the Moldovan towns on the regional border that depend entirely on electricity produced in the breakaway province with Russian gas. Plans to buy more electricity from its EU border may not prove as solid as before, either, now that a far-right, pro-Russia candidate has won in the first round of Romania’s presidential elections.
“Such a situation of interruption of the gas supplies would not be simply a crisis,” said Oleg Serebrian, the deputy prime minister in charge of Moldova’s relations with Transnistria, according to the country’s state news agency. “I dare to say that it would actually be a humanitarian catastrophe.”
Mitrova echoed that concern.
“There are lots of unknowns, but for Moldova, I’m afraid, it’s going to be a very difficult winter,” she said. “That’s why there are claims it’s catastrophic. I share those fears. It’s really going to be very difficult.”
Alaiba admitted that the last three years showed him “you cannot really make a U-turn” with an entire energy system. But he said the half of Europe that once saw Russia as a reliable gas supplier has now come to understand what Moldovans have experienced for three decades as the Kremlin routinely threatened to cut off gas during political disputes.
“The process of decoupling is neither cheap nor happens overnight,” he said. While breaking free from Transnistria’s grip on Moldova’s electricity supply “is not technically possible at the moment,” he said there’s no turning back from his country’s westward trajectory.
At the start of this century, Moldova sold 70% of its goods to Russia. Now, that same percentage of exports heads westward into Europe and North America. Record plum exports vaulted Moldova to the No. 3 spot worldwide last year — making the country Europe’s undisputed top seller of the succulent stone fruit. Construction of the transmission lines to Romania, Alaiba said, is “already underway.”
“You have to have a necessary degree of resilience and independence in order to ensure the long-term stability of your economy, and being dependent on one country that is prone to using the relationship as your one supplier… has caused us to waste three decades,” Alaiba said. “Let that be the lesson from Moldova.”
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Publish date : 2024-12-01 21:50:00
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