Moldova faces energy crisis after halt of Russian gas flows
- 3 January, 14:31
Moldova has plunged into deep economic crisis after Ukraine halted the transfer of Russian gas to Europe through its territory.
Kyiv refused to renew the five-year gas transit deal between Russia and Ukraine in January, ending Moscow’s decades-long dominance in European energy markets.
Moldova is probably most affected by the termination of the gas transit deal as it relies on Russia for energy supplies. Unlike other buyers such as Slovakia and Austria, Moldova had not secured alternative gas supplies. However, in anticipation of Russian gas cutoff, Moldova and its Transnistria breakaway region declared a state of emergency earlier in December.
The halt in gas supplies threatens to cripple Moldova’s largest power plant, Kuciurgan, located Transnistria region where 1,500 Russian troops are stationed. In response to gas crisis, the breakaway region has shut down all industrial companies except food producers.
“All industrial enterprises are idle, with the exception of those engaged in food production – that is, directly ensuring food security for Transdnistria,” Sergei Obolonik, first deputy prime minister of the region, told a local news channel.
“It is too early to judge how the situation will develop ... The problem is so extensive that if it is not resolved for a long time, we will already have irreversible changes – that is, enterprises will lose their ability to start up,” he went on saying.
