Key Points
- Gazprom will stop gas supplies to Moldova starting Jan. 1.
- Moldova disputes Gazprom’s $709 million debt claim.
- Moldova seeks to reduce reliance on Russian gas for energy security.
Citing outstanding payments, Russian energy giant Gazprom said on Saturday that it will halt gas deliveries to Moldova beginning at 0500 GMT on January 1. Further energy interruptions are a possibility for Moldova, which is already bracing for catastrophic power outages
Gazprom halts Moldova gas supplies over unpaid debt dispute
Gazprom stated that if the debt problem is not settled, it retains the right to end the supply agreement with Moldova.
Every year, Russia provides Moldova with about 2 billion cubic meters of gas, which is transported to the separatist province of Transdniestria via Ukraine. Gas is used to generate cheap electricity that is sold to areas under government control in Moldova. As the existing transit deal expires on December 31, Moldovan Prime Minister Dorin Recean denounced Gazprom’s action, calling it a step toward a complete cessation of Russian gas exports through Ukraine.
Moldovan officials contend the amount is $8.6 million, but Gazprom says the country owes $709 million in unpaid bills. Gazprom has insisted on payment before looking into other supply sources.
Recean charged that the Kremlin was applying pressure on the nation’s Western-leaning leadership by using energy as a political tool.
According to Recean’s Facebook post, “this decision confirms the Kremlin’s intention to leave Transdniestria’s residents without light and heat in the middle of winter.”
Moldova diversifies energy sources to reduce dependence on Russia
To lessen its reliance on Russian gas, Moldova has diversified its energy sources. Recean declared, “Our nation is ready to deal with any situation that comes up after the Kremlin’s decision.”
While household gas supplies will be available until January 1, Transdniestria has already set limitations on gas use for commercial enterprises that are not considered important.
To deal with the impending energy crisis, states of emergency have been proclaimed in both Moldova and Transdniestria. Additionally, starting January 1, Moldova has promised to reduce electricity exports and power consumption by a third.
Gazprom was accused by President Maia Sandu of aggravating the situation by refusing to send gas via other lines.
