Daily Newsletter

26 November 2024

Daily Newsletter

26 November 2024

Moldova and Russia to explore alternative gas routes for Transdniestria amid Ukraine transit uncertainty

The current gas transit agreement between Ukraine and Russia is set to end in December.

robertsailo November 26 2024

Moldova's energy minister has reportedly held talks with the CEO of Gazprom to discuss alternative routes for supplying Russian gas to the country’s breakaway region, Transdniestria, if transit through Ukraine ceases, reported Reuters, citing sources.

The current gas transit agreement between Ukraine and Russia is set to end on 31 December 2024, and Ukraine has announced it will not extend it. This poses challenges for Transdniestria, a region reliant on Russian gas.

"They (Energy Minister Victor Parlicov and CEO Alexei Miller) focused on alternative routes for gas supplies to the Transdniestrian region of Moldova, if transit through Ukraine is disrupted," Moldova's Energy Ministry said in a statement after the talks in St Petersburg.

Transdniestria hosts a significant power plant fuelled by Russian gas, supplying electricity to both the breakaway region and much of Moldova. This plant is crucial for Transdniestria's economy.

Under President Maia Sandu, Moldova has reduced its dependency on Russian gas since 2022, opting for European suppliers. However, Gazprom continues to supply Transdniestria at no cost.

The recent talks marked a rare official meeting between Moldova and Russia, whose relations have been strained since Russia's 2022 invasion of Ukraine, which Moldova condemned.

Parlicov told Reuters that the talks were critical to ensuring stability in Moldova and the region.

Parlicov said: "We are not waiting until the last minute to address these challenges and are taking calculated steps to manage any risks. Engaging in dialogue with Gazprom is a necessary part of assessing the state of play and identifying workable solutions."

"As part of this effort, I have met Gazprom as the deadline for reserving capacity on an alternative route approaches."

If Ukraine ends Russian gas transit, an alternative route for Transdniestria could involve the TurkStream pipeline through Turkey, Bulgaria and Romania.

Gazprom announced that both parties "agreed to continue discussing options for organising deliveries of Russian natural gas to Moldova from 1 January 2025".

Parlicov noted that Moldovagaz, a Gazprom subsidiary managing gas distribution in Moldova, had proactively reached out to Gazprom to explore alternative delivery routes.

"While we have not yet received a response, we remain fully engaged in exploring all viable options to safeguard Moldova’s energy needs.

"The destabilisation of Moldova's Transdniestria region serves no one's interests – not Moldova's, not Ukraine's and certainly not the European Union's," he added.

Discussions also covered Moldova's debts for previous deliveries and the composition of Moldovagaz's board, as stated by the Energy Ministry.

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