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Home Moldova

Russia says it will stop gas exports to Moldova from Jan 1

December 29, 2024
in Moldova
Russia says it will stop gas exports to Moldova from Jan 1
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MOSCOW/CHISINAU – Russian energy giant Gazprom said on Dec 28 that it would suspend gas exports to Moldova from 5am GMT (1pm Singapore time) on Jan 1 owing to unpaid debt by the country, which is bracing itself 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 two billion cubic metres of gas a year, which is piped via Ukraine to the breakaway region of Transnistria, 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 Transnistria region without light and heat in the middle of the winter,” Mr 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 stands at US$709 million (S$960 million). Moldova has put the debt at US$8.6 million.

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

Transnistria and the government in Chisinau agreed in 2022 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 Transnistria would face hours-long blackouts similar to those experienced by Ukraine owing to Russia’s attacks on its energy infrastructure in their war.

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

He added: “Our country is prepared to handle any situation that arises following the Kremlin’s decision.”

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

Moldova and Transnistria have both declared states of emergency over the threat of disrupted gas supplies, and Moldova said on Dec 27 it will 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. REUTERS

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Publish date : 2024-12-28 17:47:00

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