Russia says it will stop gas exports to Moldova from January 1

Russian energy giant Gazprom said on Saturday it would suspend gas exports to Moldova from 0500 GMT on Jan. 1 due to unpaid debt by Moldova, which is bracing for severe power cuts.

It said the company reserved the right to take any action, including terminating the supply contract with Moldova.

There were no immediate comments from officials in Moldova.

The supply suspension is a precursor to a total shutdown of Russian gas exports via Ukraine and to Europe, where it flows further to Slovakia, Austria, Hungary and Italy, once a current transit deal with Ukraine expires on Dec. 31.

Moldova will be hit the hardest by the shutdown.

Russia supplies Moldova with about 2 billion cubic meters of gas per year through Ukraine. This is piped to the breakaway region of Transdniestria which uses the gas at a plant to generate cheap power, which it sells on to the rest of Moldova.

Russia, which is critical of Moldova’s West-leaning central government, has said that Moldova should pay a debt on past supplies, which according to Russian calculations stands at $709 million. Moldova has said its debt is $8.6 million.

Transdniestria and the government in Chisinau agreed in 2022 that all Russian gas received by Moldova would flow to the breakaway region, which traditionally does not pay for fuel.

Without gas supplies, the power-generating plant could stop working and Moldova and Transdniestria would face hours-long blackouts similar to those that Ukraine has learned to live with due to Russia’s attacks on its energy infrastructure in their war.

Moldova’s population of 2.5 million has been preparing for long power cuts since Ukraine’s government said it will not extend its transit contract with Gazprom.

Moldova and Transdniestria have both declared states of emergency over the threat of disrupted gas supplies.

Moldova said on Friday it will curb power exports and introduce measures to reduce consumption by at least a third from Jan. 1.

Moldova’s President Maia Sandu has accused Gazprom of provoking an energy crisis, saying it was refusing to supply gas through an alternative route.