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Moldova’s Breakaway Region Idles Industry Without Russian Gas

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Moldova’s Breakaway Region Idles Industry Without Russian Gas

Days after Russian natural gas stopped flowing to the breakaway region of Transnistria in Moldova, the area shut down all industrial production except food production, Transnistria’s first deputy prime minister, Sergei Obolonik, said.

“All industrial enterprises are idle, with the exception of those engaged in food production – that is, directly ensuring food security for Transdniestria,” said the senior official, as quoted by Reuters.

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Transnistria has also cut off the supply of heating and hot water to households after Russia suspended the transit of natural gas via Ukraine at the start of the year.

The move followed a declaration by Ukraine that the country would not renew the transit deal with Gazprom while the war continues.

Russia exported some 2 billion cu m of natural gas to Transnistria, where the gas is used to generate electricity that is then transmitted to Moldova.

Moldova has been trying to fend off Russian influence in the breakaway Transnistria region, a narrow strip of land between the Dniester River and the Ukrainian border, which isn’t recognized by the international community.

Since 2022, however, Transnistria and the central government of Moldova have agreed that all natural gas sent by Russian giant Gazprom to Moldova flows to Transnistria. Following the reports that Ukraine will not renew the transit deal with Gazprom, the Moldovan authorities discussed alternative supply routes with Gazprom, which has agreed to consider these but only after the outstanding debt to Gazprom is paid.

Moldova, meanwhile, is trying to cut its energy consumption by at least 33% to cope with the end of gas deliveries from Russia. For the country, the only alternative to these are imports from neighboring Romania and, per plans, local wind and solar.

At 0500 GMT on New Year’s Day, Russian gas giant Gazprom halted pipeline deliveries to Europe via Ukraine, and the last remaining EU members that were still receiving gas from Russia until December 31 – Austria, Slovakia, and Hungary – lost this source of supply.

By Charles Kennedy for Oilprice.com

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