Gazprom makes a strong statement about Russian gas to EU candidate country

Khánh Minh |

Gazprom has just issued a statement: Russian gas will officially stop flowing to EU candidate Moldova from January 1.

According to RT, the reason given is the historical debt of up to 709 million USD that Moldova has not paid, a figure that the Chisinau government has strongly denied.

Gazprom will cut gas production to zero from 8:00 a.m. on January 1, 2025 ( Moscow time), citing Russian contract terms and laws. The group asserts the right to unilaterally terminate the contract and demand compensation from Moldovagaz, a company in which Gazprom owns a 50% stake.

In response, Vadim Ceban, Moldova's interim director ofgaz, pledged that Moldova will import gas from European and regional markets to meet domestic consumption needs by March 2025.

However, Moldova's energy situation remains alarming as the country's parliament has declared a 60-day state of emergency since December 16, expected to face power shortages and power supply disruptions.

Moldova receives gas from Russia via Ukraine's transit network under a five-year contract with Gazprom, which expires on December 31. However, Ukraine has announced that it will not extend the contract, causing gas flows to Moldova to be completely interrupted from the beginning of 2024.

Moldova's Deputy Prime Minister Oleg Serebrian admitted that Ukraine is unlikely to be able to maintain transit "for Moldova alone". In addition, relations between Moldova and Gazprom have been strained since 2021, when Moldova rejected new terms offered by Gazprom and accused the Russian corporation of using gas as a tool of political pressure.

Although initial agreements offered relatively low prices, tensions began to rise as gas prices rose. By 2007, Moldova had paid $170 per 1,000 cubic metres, up from $80 in the early 2000s.

Disputes over debt and prices escalated, culminating in the $709 million debt that Gazprom claimed Moldova must pay. A 2022 audit conducted by Moldova largely dismissed the debt, saying the actual figure was just $9 million. Moldova insists that the debt owed to the breakaway region of Transnistria, which receives cheap gas from Russia in exchange for electricity, is not its responsibility.

moldovan Prime Minister Dorin Recean has criticised Gazprom's move as a "pressure trick" and said he would not accept the debt. He said the government would take the case to an international arbitration to protect national interests.

Faced with the risk of losing Russian gas supplies, Moldova is forced to seek alternative energy sources from Europe. However, in the context of rising global energy prices, ensuring enough gas and electricity for people will be a big challenge.

Khánh Minh
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