Gazprom Announces Halt of Gas Supplies to Moldova Starting January 1
- 30-Dec-2024 8:00 PM
- Journalist: Bob Duffler
Gazprom, Russia’s state-owned energy giant, announced on Saturday that it will halt gas supplies to Moldova starting January 1, citing the country's alleged unpaid debt. Moldova, an EU candidate nation, has been preparing for power cuts, introducing emergency measures in response. Gazprom issued a statement online, indicating that it reserves the right to take further actions, including terminating its contract with Moldovagaz, Moldova’s primary gas operator, in which the Russian company holds a majority stake. The suspension of gas will affect the Kuciurgan power plant, Moldova’s largest, located in the breakaway, pro-Russian Transnistria region.
In response, Moldova accused Russia of weaponizing energy supplies. The Kuciurgan plant, which generates electricity for a significant portion of Moldova, operates on Russian gas. The plant was privatized in 2004 by Transnistrian authorities and later sold to a Russian state-owned entity. Moldova, which has a pro-Western central government, does not recognize this privatization. Earlier this month, Moldova’s parliament declared a state of emergency in the energy sector, anticipating that Russia might cut off gas supplies during the winter. The country also formed a special commission to manage risks related to the potential disruption of energy supplies and approved energy-saving measures.
Gazprom claims Moldova owes nearly $709 million for past gas deliveries, a figure strongly contested by Moldova’s government. Prime Minister Dorin Recean dismissed Gazprom’s claim, citing an international audit that invalidated the debt. According to Moldova, an audit by British and Norwegian firms revealed the actual debt to be about $8.6 million, a small fraction of the amount claimed by Gazprom. Recean added that Moldova has been working to diversify its gas supplies and reduce reliance on the Kuciurgan plant. The government is also exploring legal options, including international arbitration, to protect the country’s interests.
Moldova announced plans to reduce energy consumption starting January 1, including cutting lighting in public and commercial buildings by 30% and adjusting the operation of energy-intensive businesses to off-peak hours. Moldova experienced severe power outages in late 2022 after Russian strikes on Ukraine, which is interconnected to the Kuciurgan plant. Meanwhile, Transnistria, which declared independence in 1992 but is not internationally recognized, has also declared a state of emergency in anticipation of possible gas shortages.
Since Russia’s invasion of Ukraine in 2022, Moldova, once fully dependent on Russia for natural gas, has taken steps to diversify its energy sources. In October, Moldova's pro-Western President Maia Sandu secured a second term, with a referendum endorsing the country's EU aspirations, despite ongoing allegations of Russian interference. Russia denies meddling in Moldova’s internal affairs. In 2022, Russia reduced its natural gas exports to Europe, citing disputes over payment in rubles, a move that European leaders decried as energy blackmail. This disruption forced European governments to seek alternative supplies, often at higher prices.