Russia’s Gazprom says it will halt gas supplies to Moldova starting January 1

Moscow, Russia’s state-owned energy giant Gazprom said on Saturday it will halt gas supplies to Moldova starting on January 1, citing alleged unpaid debt by the European Union candidate country, which has brought in emergency measures as it braces for power cuts.

Gazprom said in an online statement that it reserved the right to take further action, including terminating its contract with Moldovagaz, Moldova’s main gas operator, in which the Russian company owns a majority stake.

The cessation of gas will stop supplies to the Kuciurgan power plant, the country’s largest, which is situated in the separatist pro-Russian Transnistria region.

Moldova reacted by accusing Moscow of weaponising energy supplies.

Gazprom supplies the gas-operated Kuciurgan plant, which generates electricity that powers a significant portion of Moldova proper. The plant was privatised in 2004 by Transnistrian officials and later sold to a Russian state-owned company.

Moldova, which has a West-leaning central government and has repeatedly complained of Russian interference, doesn’t recognise the privatisation.

Earlier this month, Moldova’s parliament voted in favour of imposing a state of emergency in the energy sector over fears that Russia could leave Moldova without sufficient energy this winter.

A special commission was also set up to manage “imminent risks” if Moscow fails to supply gas to the Kuciurgan plant and on Friday approved a series of measures aimed at saving energy.

Gazprom has said Moldova owes close to USD 709 million for past gas supplies, a figure fiercely disputed by the government in the capital Chisinau.

Moldovan Prime Minister Dorin Recean on Saturday condemned the move, saying that his government does not recognise the debt cited by Gazprom, which has been “invalidated by an international audit.”

Moldova claims, citing findings by British and Norwegian audit firms, that its debt stands close to USD 8.6 million, a small fraction of that claimed by Gazprom.

Recean added that Chisinau has pushed to diversify its natural gas supplies to reduce dependence on the Kuciurgan plant, and said the government will “carefully analyse legal options, including resorting to international arbitration” to protect Moldova’s national interests.

“Our country is prepared to handle any situation that arises following the Kremlin’s decision,” he said.

Moldova’s government on Friday announced it would implement a series of measures starting January 1 to reduce energy consumption.

These include limiting lighting in public and commercial buildings by at least 30 per cent, and energy-intensive businesses operating during off-peak hours.

In late 2022, Moldova suffered major power outages following Russian strikes on neighbouring Ukraine, which is interconnected to the Kuciurgan plant.

Transnistria, which broke away after a short war in 1992 and is not recognised by most countries, also declared its own state of emergency earlier this month, in case the region does not receive gas supplies.

When Russia fully invaded Ukraine in 2022, Moldova, a former Soviet republic of about 2.5 million people, was entirely dependent on Moscow for natural gas but has since pushed to diversify and expand its energy sources.

In October, Moldova’s pro-Western President Maia Sandu won a second term in office, and a referendum voted in favour of securing the country’s path toward the EU, in two votes overshadowed by ongoing claims of Russian interference to derail the country’s westward shift in recent years. Russia denies it is meddling in Moldova.

Russia cut off most natural gas supplies to Europe in 2022, citing disputes over payment in rubles, a move European leaders described as energy blackmail over their support for Ukraine against Russia’s invasion.

European governments had to scramble to line up alternative supplies at higher prices, much of it liquefied natural gas brought by ship from the US and Qatar. PY PY

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