Moldova faces Gazprom amid $700 million debt dispute

Gazprom suspends gas deliveries to Moldova starting January 1, citing a $700 million debt dispute. This interruption, in the midst of political tensions, underscores the country's energy dependency.

Share:

Subscribe for unlimited access to all the latest energy sector news.

Over 150 multisector articles and analyses every week.

For less than €3/week*

*For an annual commitment

*Engagement annuel à seulement 99 € (au lieu de 149 €), offre valable jusqu'au 30/07/2025 minuit.

The Russian energy giant Gazprom confirmed it will halt all natural gas deliveries to Moldova starting January 1, 2025. This decision, announced in an official statement, stems from a longstanding financial dispute between Moscow and Chisinau. Gazprom claims a debt of $700 million, a figure strongly contested by Moldovan authorities.

An Energy and Financial Dispute

The disagreement originates from the historic relationship between Moldova and Gazprom, whose local subsidiary, Moldovagaz, is 50% owned by the Russian group. Following a sharp price increase in 2021, Gazprom demanded immediate payment, but Moldovan authorities commissioned an independent audit. Findings from Western firms tasked with the review estimated the debt at only $8.6 million.

For Gazprom, Moldova’s refusal to settle justifies the suspension of supplies. In its statement, the company noted that it reserves the right to terminate the contract with Moldova altogether if no resolution is reached.

Chisinau’s Response

In response to the impending cutoff, Moldova accuses Moscow of political manipulation. Prime Minister Dorin Recean called the move a “tactic of oppression” and assured that the country is prepared to diversify its energy supply sources. Emergency measures, such as limiting public lighting and rescheduling industrial production hours, have been implemented to reduce consumption.

Despite the gas supply halt, the pro-Russian separatist region of Transnistria continues to receive deliveries. Its thermal power plant provides about 30% of the electricity consumed nationwide, ensuring some stability.

A Political and Geopolitical Challenge

This energy crisis comes as Moldova strengthens its pro-European alignment, underscored by the re-election of Maia Sandu as president. Her victory, overshadowed by accusations of Russian interference, reflects a strategic shift that has significant implications for bilateral relations with Moscow.

Moreover, this suspension occurs as other Eastern European nations, such as Slovakia and Hungary, face pressure due to energy tensions with Russia. Ukraine recently announced it would not renew its gas transit contract with Moscow, adding further uncertainty for neighboring states.

Baghdad and Damascus intensify discussions to reactivate the 850 km pipeline closed since 2003, offering a Mediterranean alternative amid regional tensions and export blockages.
A free trade agreement between Indonesia and the Eurasian Economic Union is set to be signed in December, aiming to reduce tariffs on $3 bn worth of trade and boost bilateral commerce in the coming years.
The visit of India's national security adviser to Moscow comes as the United States threatens to raise tariffs on New Delhi due to India’s continued purchases of Russian oil.
Brussels freezes its retaliatory measures for six months as July 27 deal imposes 15% duties on European exports.
Discussions between Tehran and Baghdad on export volumes and an $11 billion debt reveal the complexities of energy dependence under U.S. sanctions.
Facing US secondary sanctions threats, Indian refiners slow Russian crude purchases while exploring costly alternatives, revealing complex energy security challenges.
The 50% tariffs push Brasília toward accelerated commercial integration with Beijing and Brussels, reshaping regional economic balances.
Washington imposes massive duties citing Bolsonaro prosecution while exempting strategic sectors vital to US industry.
Sanctions imposed on August 1 accelerate the reconfiguration of Indo-Pacific trade flows, with Vietnam, Bangladesh and Indonesia emerging as principal beneficiaries.
Washington triggers an unprecedented tariff structure combining 25% fixed duties and an additional unspecified penalty linked to Russian energy and military purchases.
Qatar rejects EU climate transition obligations and threatens to redirect its LNG exports to Asia, creating a major energy dilemma.
Uganda is relying on a diplomatic presence in Vienna to facilitate technical and commercial cooperation with the International Atomic Energy Agency, supporting its ambitions in the civil nuclear sector.
The governments of Saudi Arabia and Syria conclude an unprecedented partnership covering oil, gas, electricity interconnection and renewable energies, with the aim of boosting their exchanges and investments in the energy sector.
The European commitment to purchase $250bn of American energy annually raises questions about its technical and economic feasibility in light of limited export capacity.
A major customs agreement sealed in Scotland sets a 15% tariff on most European exports to the United States, accompanied by significant energy purchase commitments and cross-investments between the two powers.
Qatar has warned that it could stop its liquefied natural gas deliveries to the European Union in response to the new European directive on due diligence and climate transition.
The Brazilian mining sector is drawing US attention as diplomatic discussions and tariff measures threaten to disrupt the balance of strategic minerals trade.
Donald Trump has raised the prospect of tariffs on countries buying Russian crude, but according to Reuters, enforcement remains unlikely due to economic risks and unfulfilled past threats.
Afghanistan and Turkmenistan reaffirmed their commitment to deepening their bilateral partnership during a meeting between officials from both countries, with a particular focus on major infrastructure projects and energy cooperation.
The European Union lowers the price cap on Russian crude oil and extends sanctions to vessels and entities involved in circumvention, as coordination with the United States remains pending.
Consent Preferences