Berliner Boersenzeitung - Moldova declares emergency ahead of expected Russia gas cuts

The former Soviet republic already had its Russian gas supplies cut off after Moscow's 2022 invasion of Ukraine, but still relies upon a gas power plant located in its pro-Moscow breakaway region of Transnistria for electricity.

Those electricity supplies are now at risk as Ukraine stops shipping Russian gas to Europe and Moscow doesn't pursue alternative supply routes to the power plant due to an old commercial dispute.

"As of December 16, a state of emergency will be in place throughout Moldova," the Moldovan parliament said in a statement after the measure was approved by 56 of 101 MPs.

The government said "insufficient energy resources that directly and immediately affect the security of the state and citizens" necessitated the state of emergency.

The measure will allow the government to mobilise resources in the nation of 2.6 million people wedged between Ukraine and Romania, as well as react more quickly to developments.

"We must ensure that this winter is the last the Kremlin can threaten our energy security," Prime Minister Dorin Recean said during the debate.

The Moldovan government has placed its hopes on a new high-voltage line between the capital Chisinau and neighbouring Romania "to put an end to energy blackmail".

This power line is under construction but is not expected to be completed before the end of 2025.

However, Ukraine has announced that it plans not to renew a contract -- which expires at the end of the year -- to transport Russian gas to Europe.

That will cut supplies to Transnistria and its Cuciurgan power plant, which provides 70 percent of Moldova's electricity.

Recean insists Russia's Gazprom could use alternative routes to transport gas to Moldova to honour its contractual obligations until 2026.

"Russia is holding the inhabitants of Transnistria hostage and is using them to destabilise Moldova and the region," he said.

The Moldovan government dismissed the energy minister last week for failing to adequately handle the energy crisis.

The Kremlin, for its part, is demanding payment of a debt of some $700 million, which is not recognised by Chisinau.

The debt dispute dates back to before the 2022 invasion of Ukraine and stems from a sudden increase in tariffs decided by Moscow in 2021.

(O.Joost--BBZ)