Gazprom Halts Gas Exports to Moldova Amid Dispute Over Debt

On December 28, 2024, Russian energy giant Gazprom announced that it would suspend gas exports to Moldova starting January 1, 2025. The company cited Moldova's alleged debt as the reason for this decision.

Moldovan officials indicated that the primary impact of this suspension would be felt in the breakaway region of Transnistria, controlled by the self-proclaimed Transnistrian Moldovan Republic, rather than in the rest of Moldova.

Gazprom's announcement stated that it reserves the right to unilaterally terminate its contract with Moldovagaz, the state gas company. Despite this, Gazprom did not mention any changes to the transit of gas through Ukraine, which is the main route for supplies to Moldova.

Moldovagaz confirmed receipt of Gazprom's notification and reassured that it has secured sufficient gas supplies from regional and European markets to meet the needs of consumers on the right bank of the Dniester River until the end of March 2025.

Currently, Russia supplies approximately two billion cubic meters of gas to Moldova annually, primarily transported through Ukraine to Transnistria. The Moldovan (Kuchurgan) power plant, located in Transnistria, is crucial for providing electricity to Moldova.

Moldovan Prime Minister Dorin Recean condemned Gazprom's decision and dismissed the claims regarding the debt, stating that the move reflects the Kremlin's intention to leave residents of Transnistria without heat and electricity during winter. He emphasized Moldova's efforts to diversify its gas supply sources to reduce reliance on a single supplier.

Russia maintains that Moldova owes approximately $709 million for past gas supplies, while an international audit cited by the Moldovan government estimated the debt at $8.6 million. Prime Minister Recean mentioned that Moldova is considering legal actions, including the possibility of seeking international arbitration regarding this matter.

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