Moldova Seeks Deal to Keep the Lights on After Russia Cut Gas Supply

Moldova Seeks Deal to Keep the Lights on After Russia Cut Gas Supply

An agreement can be completed at the last minute to resolve the conflict that reduced Russian gas supplies to the separatist Moldovan region of Transnistria this week.

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(Bloomberg) – Oksana runs out of time. Along with thousands of others in Treatsteria, 38 -year -old housewife is arrested in tightening a political rope that can see her home in the dark next week.

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On the one hand, Russia-transnistria, which has the effective secession area in Moldova, has been found with free gas for more than two decades. On the other hand, there is the Moldovan government, which has ambitions to join the European Union by 2030, and to stay away from the orbit of Moscow.

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The giant Gazprom PJSC in Russia stopped the supplies to Transnistria on January 1, forcing it to stop almost all industrial activity, impose power outages and close central heating. Although it has not bought any gas from Russia since late 2022, Moldova – a former Soviet Republic – has also suffered from collapse in the show, as it is sources of major electricity from Transnistria.

A portion of 20 million euros ($ 21 million) brought some comfort and allowed for transportation of gas to Transnistria to temporarily stop the power outages in the region.

This helps runs out on February 10.

If a deal between Moldova and Transnistria is not agreed to restore the long -term gas supply by Monday, Oxana lights can be cut and tightly again like moderate tips in January to February more cold.

“We live day after day,” says Oksana, who asked not to give her title because of the sensitivity of the topic. “At the present time, we are waiting on February 10 and we hope that politicians will finally reach an agreement. If they do not, there will be no electricity or heating.”

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Moscow has previously accused the power supply weapon for political reasons.

The President of Moldova Mia Sando – who was re -elected in November after elections that were overwhelmed by the allegations of Russian intervention – are in support of the neighboring Ukraine in her struggle with Moscow and want to join the European Union within five years. Its government has accused Russia of deliberately manufacturing the energy crisis to try to influence the parliamentary elections in Moldovan, to be held later this year. It also warned that a supporting government in the country of 2.4 million people could allow Moscow to unify its military capacity in Trancesteria, which already hosts 1,500 Russian soldiers.

Gazprom was traditionally the only gas supplier for Moldova, exporting about 3 billion cubic meters per year, with nearly two -thirds to Transnistria. The main fuel used at the power station of the Grace Grace, which produces electricity for all the countries, was. Although Russian gas supplies to the separation area lasted until the end of last year, the rest of Moldova diversified in 2022, when the gas trading unit was established within the state -owned Energom company to buy European merchants, according to the Ministry of Energy in Moldova.

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Since the early first decade of the twentieth century, the cost of Russian gas that flows to Transnistria has exceeded $ 11 billion, according to the Ministry of Energy estimates in Moldovan. But Gazprom did not ask any payment. Families and companies paid for the gas they have consumed and the authorities have used these payments to meet the budget needs, and to effectively transfer money into a form of support from Moscow to Jeep Crimin.

The current crisis depends on debts much less than 709 million dollars, which Gazprom says Moldova says – with the exception of Treatsteria – its debtor. The authorities at Chisinau, the capital of Moldovan, believes that the amount due is much smaller, $ 8.6 million, and says they have an international review to support their case.

“Why did the Russian gas producer began to focus on the debt of Moldova only in 2021,” he asks two prestige Boosan, Minister of State at Moldova Energy, in an interview. “Perhaps because since 2020, we had a pro -Europe government. It became clear in 2022 that we needed to fight blackmail in Gazprom.”

Gazprom did not immediately respond to Bloomberg’s request for comment.

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Keep the gas on

Transnistria is a piece of Russian -speaking land mainly on the left bank of the Dniester River. A home to more than 350,000 people and next to Ukraine, a separate, non -coastal state is recognized as part of Moldova, but had a tense relationship with the central government since it fought a short separatist war with it in the early 1990s.

With no mark of Gazprom as it will return gas flows to transnistria, the leader of the self -announced region, Vadim Krasenoski, visited Moscow in January to seek help. Krasnoski said that he returned with a promise from Russia that he would lend money to Transnistria, allowing it to finance gas purchases through a local distributor, tiraspoltantsgaz, through a long -term contract with Moldovan Gas Moldovagaz. But he gave little details, adding only that a European company will provide gas.

This complex process includes Tiraspoltransgaz, the payment of moldovagaz, which transports these funds to suppliers to provide fuel to the western border of Moldova. At that point, moldovagaz is charged to Transnistria. However, Moldovan and officials must walk in a legal rope to ensure that the deals are not violated by the European Union rules and practices, including sanctions on Russia.

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Moldovagaz is pivotal. It is Moldovan, the only allowed to deliver gas to Transnistria. “It’s the most difficult period in my career,” says Vadim Center, Acting Director of Moldovagaz, in an interview.

Count the “freedom price”

For Moldova there are also great costs. The country relied on the cheap electricity produced in the Triskinia. Since January 1, Moldova had to replace this by increasing electricity imports from Romania and paying much higher prices.

“It was easy with Moldavskaya Gres, who covered our consumption, especially in peak hours,” says Eugenu Buzatu, the Chargé d’Affairs Energom president. “Now we need to book capabilities even on the basis of a day-on the basis of energy exchange.”

To reflect the increased costs of imported electricity, the government raised the definitions by 65 % to 75 % in one of the poorest countries in Europe. Why do I need electricity that I cannot pay for? Anastasia Anina says, who lives in the village of Kobanka, which is linked to the power network in Transnistria, and has suffered from severe power outages.

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The main goal of the anger of the villagers is not Russia, but Sando, the president of Moldovan, and the authorities who were accused of trying to imprison them in the electricity network where the prices are almost five times higher than they paid in the past.

Daniel Foda, a spokesman for the Moldovan government, said in late December that such difficulties were the “price of freedom” from relying on Russia. But Copanca reflects a stark fact for the authorities before the elections: not all voters in Moldova believe that they are freedom they can bear.

The European Union has agreed to a two -year financial package with Moldova to completely increase the Russian energy that will reach 250 million euros in 2025. It will allow the government to compensate families for some “excess electricity costs” and assist schools and hospitals to deal with high prices. A portion of investment is also allocated in energy projects.

60 million euros were available from the European Union financing to Transnistria, but the European Commission provided “subject to the steps taken on basic freedoms and human rights.” The authorities of the self -declared Transnistria region have not responded to the display.

For Okana, the demands are simple. She just wants to know that she will get electricity after the two. “We hope that after February 10 there will be no power outage, we hope for the best.”

– With the help of Irina Vilcu and Daryna Krasnolutska.

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