Gazprom plans on cutting off Moldova`s gas supplies on first of January
(MENAFN) Gazprom, the Russian energy giant, announced it will halt natural gas supplies to Moldova starting January 1, citing the country’s failure to settle outstanding debts. Moldova's gas debt, estimated at $709 million, is contested by the government, which disputes the validity of the claim.
The company confirmed that it would stop delivering gas at 8 am Moscow time on January 1, in line with the existing contract and Russian law. gazprom also emphasized its right to unilaterally terminate the agreement and pursue damages from Moldovagaz, in which it holds a 50% stake.
In response, Moldovagaz’s interim CEO, Vadim Ceban, reassured citizens that gas from European and regional sources would meet the needs of the right-bank of the Dniester River, controlled by the Moldovan government, through March 2025.
Moldova asserts that since December 2022, it has redirected Russian gas to a hydropower plant in Transnistria, an unrecognized breakaway region, in exchange for lower electricity prices. Moldova imports Russian gas via Ukraine under a five-year contract with Gazprom, which is set to expire on December 31. Ukraine has indicated that it will not extend the agreement.
Earlier this month, Moldova declared a 60-day state of emergency, anticipating energy shortages amid the uncertainty of gas transit. Moldova has historically been reliant on Russian energy, but the relationship has soured in recent years due to disputes over gas pricing and unpaid debts. The situation escalated in 2021 when Moldova rejected Gazprom’s contract terms, opting instead for agreements with the European Union.
Moldova has rejected Gazprom's debt claim and intends to pursue international arbitration to resolve the issue and safeguard its energy security.
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