Moldova has declared a state of emergency in the energy sector due to a possible cessation of gas supplies from Russia to the country

Author:
Iryna Perepechko
Date:

On the evening of December 12, the Moldovan Parliament declared a state of emergency in the energy sector for 60 days, which will take effect on December 16. This is due to the possible cessation of Russian gas supplies to the country from January 1, 2025 — that is when the transit contract through Ukraine expires, which is not going to extend it.

This is reported by NewsMaker.

The introduction of a state of emergency will allow the Moldovan government to react quickly and curb energy exports, writes Reuters.

In particular, to purchase gas and electricity in an accelerated manner, to raise funds for the purchase of energy resources, to implement decisions in the energy sector, deviating from the legislation.

Moldovan Prime Minister Dorin Recan explained that the contract the country has with “Gazprom” obliges Russia to supply gas to Moldova until September 30, 2026. In his opinion, this is an artificially created problem, because, besides Ukraine, there are other transit routes.

Moldova also has the option of a route through Turkey. The deadline for Russiaʼs “Gazprom” to reserve capacity for Moldova through this trans-Balkan gas pipeline is December 16.

However, supplies via this route are not yet guaranteed. During the negotiations, “Gazprom” put forward a requirement for continuing supplies via alternative routes: Moldova must pay a debt of $709 million.

Why did the debt arise?

Since the fall of 2022, “Gazprom” has been transiting 5.7 million cubic meters of gas daily from Russia to Moldova via Ukraine — less than the country needs in winter. All Russian gas is transited to Transnistria, where it is used to generate electricity at the Moldovan DRES, which is consumed by both banks of the Dniester. No one pays Russiaʼs Gazprom for this gas.

According to the Moldovan Prime Minister, the right bank of the Dniester is provided with natural gas for the entire cold season. However, consumers on the left bank still depend on the only source of imports — “Gazprom”.

He emphasized that Putin "wants to leave the population of Transnistria without gas and electricity and hold them hostage. Moscow is doing this to destabilize the situation in Moldova."

"I have a message for both ordinary citizens and the business environment on the left bank of the Dniester. We will help, but we will not discriminate against citizens on the right bank of the Dniester. You have to pay for energy. Free gas was a lure for you, now you see it," said Rechan.

At the same time, NewsMaker writes that the cost of electricity generated by the Moldovan DRKS for the Right Bank of the Dniester is $66 per 1 MW. In neighboring Romania, the average price on the exchange is approximately three times more expensive – $180 per 1 MW. In the winter, the Moldovan DRKS accounts for 70% of the electricity consumed by the Right Bank of the country.

The Prime Minister added that "in the event that “Gazprom” completely stops supplies, the Kuchurganska TPP has coal reserves that could cover the electricity consumption of the Transnistrian region only for a very limited period and with significant risks to the stability of the network."

Recan said that this is the last winter when Russia can blackmail Moldova.

Help Romania

The Prime Minister of Romania said that his country, together with Moldova, has already started developing a plan in case “Gazprom” completely stops gas supplies. Romania will help Moldova.

The explanatory note to the draft law on the introduction of a state of emergency also notes that the potential electricity deficit can be covered by Romania within the limits of the commercial opportunities provided by the European Network of Transmission System Operators for Electricity (ENTSO-E). However, if this is not enough to cover the deficit, the price of electricity will increase uncontrollably.

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