MD Moldova News

Ukraine Halts Russian Gas Flow, Prompting Crisis in Eastern Europe

On January 1, 2025, Ukraine officially ceased all gas supplies through its pipeline network to Europe, marking a significant shift in the energy landscape following the expiration of its contract with Russian gas company Gazprom. Ukrainian Prime Minister Denys Shmyhal confirmed earlier that no new agreement would be established, leading to concerns across the region, particularly in Moldova, Slovakia, and Hungary. Moldova, not an EU member, is experiencing immediate repercussions as it grapples with an energy crisis amid harsh winter conditions. The absence of gas from Ukraine has resulted in a lack of heating and hot water, with local authorities struggling to secure alternative supplies. Gazprom's offer to supply gas through different routes is contingent upon settling a disputed debt that Moldova refuses to acknowledge. Slovakia and Hungary, while currently better positioned due to alternative energy routes, face uncertainty regarding their future gas supplies. Slovakia has estimated additional costs of nearly €180 million for 2025 to secure gas through alternative pipelines linking to Germany. Hungary plans to increase its imports of Russian gas via Turkey, which remains an essential route following the shutdown of the Ukrainian pipeline. In an effort to stabilize the situation, the International Energy Agency has encouraged European nations to assist Moldova, emphasizing the need for support amid growing divisions in the region regarding energy policy. Despite the challenges, experts indicate that Europe is unlikely to face a severe gas supply crisis, as the flow of gas through Ukraine has been declining over recent years, contributing to less than 5% of the continent's gas needs. Nevertheless, recent developments have raised concerns about rising gas prices amid a global market affected by the situation.
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Transnistria Faces Energy Crisis Amid Russian Supply Cut

The breakaway region of Transnistria, which is backed by Russia, is experiencing a severe energy crisis as it has been without Russian natural gas since the beginning of the year. This situation arose after a contract between Gazprom and Ukraine expired, leading to a cessation of gas supplies not only to Transnistria but also to the rest of Moldova. The Moldovan government claims that the allegations of gas debts from Gazprom are unfounded. In recent days, residents of Transnistria have reportedly experienced increasing hours without electricity, with blackouts extending up to eight hours a day. The region's economy has been significantly affected, with industrial production grinding to a halt. The authorities in Transnistria, which has a large population of Russian speakers, have urged citizens to find alternative heating sources and conserve energy. While Moldova has managed to secure gas and electricity imports from Romania despite higher prices, the isolated Transnistrian populace is left struggling. The situation has prompted concerns that Russia, which has long claimed to protect the residents of Transnistria, has effectively abandoned them in their time of need. Political experts suggest that this energy supply cut may be a strategic move by Russia to destabilize Moldova ahead of upcoming elections in 2025. As Moldova continues to orient itself toward the West, the Kremlin seeks to reinforce its influence in the region through economic pressures and political manipulation. Moldovan officials have condemned Russia's actions, labeling them as attempts to use energy supply as a political weapon to undermine the nation's stability.
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