Moldova - Russia Threatens Gas Supply in Europe's Poorest State - BBC News

10/27/21, 8:06 PM Moldova: Russia threatens gas supply in Europe's poorest state - BBC News
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Moldova: Russia threatens gas supply in

Europe's poorest state
By Steve Rosenberg
BBC News Chisinau, Moldova
10 hours ago
Moldova's Foreign Minister, Nicu Popescu, is trying to look on the bright side
His country is immersed in a gas crisis. But Nicu Popescu is trying to remain
positive.
https://www.bbc.com/news/world-europe-59048894 1/9
"On Monday our country made history," Moldova's foreign minister tells me.
"For the first time Moldova bought gas from a source that was not Russia's
Gazprom."
The gas shipment from Poland's PGNiG was one million cubic metres.
Moldova will need much larger volumes if Gazprom does what it has
threatened to do: turn off the gas taps.
Up until now, 100% of Moldova's gas has come from Russia. But the contract
to supply it expired at the end of September. Gazprom raised the price and
Moldova balked at paying it. In the absence of a new deal, the Russian energy
giant reduced supplies, prompting Moldova to declare a 30-day state of
emergency. Gazprom accused Moldova of "provoking a crisis" and demanded
repayment of a $709m (£514m) debt, which Moldova disputes.
Negotiations continue. Moldovan officials say they would like to sign a new
contract with Gazprom, but only if the terms are favourable.
If there is no deal with Russia, could Moldova, one of Europe's poorest

countries, buy enough gas elsewhere?
Moldova's gas contract with Gazprom expired at the end of last month
"It's the worst time to have a gas crisis at home," Mr Popescu admits. "The
prices are higher than ever. We see this market crunch on a global scale. But
we've had support. In recent years Romania built a new gas pipeline into
Moldova which gives us a safety valve. We've also had some advice from the
European Union on how to diversify a country's gas supply within a few days."
Like many enterprises in Moldova, the sugar factory in Drochia has been
affected by the gas shortage.
"We're able to use just a quarter of the gas we need," manager Rostislav
Magdei explains. "We're topping that up with alternative sources of energy. We
hope our government will compensate any losses arising from the high price
of fuel."
This sugar factory is among many businesses hit by the gas shortage
Once in Moscow's orbit, Moldova has been tilting from Russia towards the
West more recently.
The country's leadership is now pro-European and supports closer ties with
the EU. Many here suspect that the gas crisis is the Kremlin's way of
expressing its disapproval.
"This year we had parliamentary elections and the pro-Russia party lost," says
Sergiu Tofilat, former energy adviser to the president of Moldova. "We have a
pro-Western party in power here. So, Russia changed its approach on the gas
supply. The Kremlin wants to punish the Moldovan people for voting against a
pro-Russia party. It's pure politics."
"Vladimir Putin is trying to keep former Soviet countries within the area of
influence of the Kremlin. We do not want to stay on our knees in front of
Moscow. We must say no to Russian blackmail and we have the opportunity
now to get rid of Russian influence in Moldova."
Sergiu Tofilat, former presidential adviser, says the Kremlin is trying to punish his country
The Kremlin denies using energy as a weapon. President Putin recently

dismissed the suggestion as "utter nonsense, drivel and politically-motivated
tittle-tattle."
EUROPEAN CRISIS: Is Russia squeezing Europe's gas supply?
WHAT NEXT? Gas crisis leaves Europe searching for solutions
For Moldova, though, reducing Russia's influence won't be easy. In energy

terms, Moldova is closely tied to Moscow. Not only has the country been
100% dependent on Russian gas. But its own gas company, Moldovagaz, is
majority-owned by Gazprom. And more than 80% of Moldova's electricity
comes from a Russian-owned power plant in Trans-Dniester - a separatist
region of Moldova, backed economically, politically and militarily by Moscow.
If you think of gas negotiations as a game of poker, then Russia has a very
strong hand.
But Trans-Dniester could prove to be a weak point for Moscow.
"Gazprom needs a gas contract with Moldova so that it can supply the
breakaway region, too, with gas," says Sergiu Tofilat. "Gazprom is a public
company, with shares listed on the stock exchange. It cannot allow itself to
sign a contract with the Trans-Dniester supplier that is not officially
recognised."
In the town of Balti, Moldovan motorists are feeling the effects of less gas. I
see long lines at the propane station.
Queuing up here are dozens of cars and disgruntled drivers.
Drivers in Balti are fed up with having to queue for fuel
"We're in this situation, because we're looking towards Europe", a taxi driver
called Valera tells me. "If we were with Russia everything would be different."
"The problem is," says another driver Yura, "that our leaders now want to be
friends with Europe and America. For cheap gas they should go to Moscow,
get an agreement. We need to bow down to Russia".
For a government that has set a pro-European course there is a danger: that a
prolonged gas shortage and higher energy bills could make Moldovans
question the direction in which their country is moving.
Related Topics
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10/27/21, 8:06 PM Moldova: Russia threatens gas supply in Europe's poorest state - BBC News

Home News Sport More

Moldova: Russia threatens gas supply in

BBC News Chisinau, Moldova

If there is no deal with Russia, could Moldova, one of Europe's poorest

The Kremlin denies using energy as a weapon. President Putin recently

EUROPEAN CRISIS: Is Russia squeezing Europe's gas supply?

WHAT NEXT? Gas crisis leaves Europe searching for solutions

For Moldova, though, reducing Russia's influence won't be easy. In energy

But Trans-Dniester could prove to be a weak point for Moscow.

Queuing up here are dozens of cars and disgruntled drivers.

Drivers in Balti are fed up with having to queue for fuel

Gazprom Russia Moldova Natural gas

More on this story

Putin denies weaponising energy amid Europe crisis

Why are gas prices so high?

Senators back criminal charges against Bolsonaro

Russia threatens gas supply in Europe's poorest state

Sister of UK Bataclan victim: 'We don't hate you'

The surrender of India's once-feared Surviving in Kuwait's 'unbearable' heat

Charlize Theron: We have to share Why is Julian Assange's case back in

BBC Travel: Canada's 6,000-year-old

Elsewhere on the BBC

Lyrics quiz Feeling hot

1 Clinton aide details sexual assault by US senator

2 The surrender of India's once-feared bandit king

3 Footballer Josh Cavallo comes out as gay

Russia threatens gas supply in Europe's poorest state

5 Senators back criminal charges against Bolsonaro

6 Australia confirms end to citizen travel ban

7 Sister of UK Bataclan victim: 'We don't hate you'

8 Hong Kong passes film censorship law

9 Strictly's Ballas thanks viewers for 'lump' alert

10 Campaigning Hiroshima survivor dies aged 96

BBC News Services

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Contact BBC News

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