State of emergency and energy crisis in Moldova – what next?

Photo-illustration: Unsplash (sasha-pleshco)

The government of Moldova declared a state of emergency in mid-December 2024 to respond to the energy crisis caused by the interruption of Russian gas supplies.

The country has found itself in a serious energy crisis caused by the decision in Ukraine not to renew, after the recent expiration, a five-year contract for the transit of Russian gas through the country. The gas was delivered to the de facto breakaway region of Moldova – Transnistria. The mentioned region, Transnistria, completely unrecognized by all international actors, but de facto separated from Moldova since the early nineties, has traditionally received very cheap or even free Russian gas that arrived via Ukraine, according to the world media. As these deliveries have now been stopped, and there is currently no safe alternative, tension is growing in Transnistria itself, but also in the entire country.

After the collapse of the Soviet Union, Transnistria declared independence from Moldova. Although Russia itself did not recognize this region as a separate state, Transnistria functioned for years with its own administration and received, as we mentioned, favorable or free Russian gas to strengthen the fragile economy. Until a few years ago, Moldova itself was largely dependent on gas from Russia, but the capital Chisinau has meanwhile turned to diversification of energy sources, while Transnistria has remained completely dependent on Moscow.

Although Chisinau has no administrative and ruling influence in this region, the largest gas power plant is located in that area and supplies energy to the rest of Moldova, which is why the crisis actually affects the entire territory, including the disputed region.

In early January 2025, Russia officially suspended all gas supplies to Transnistria. Initially, Moscow cited unpaid debts as the main reason, but an additional problem is certainly the non-extended agreement on the transit of Russian gas, which cut off the current supply route to Transnistria. There is still no official decision on the second, alternative route, for example supply via the Turkish Stream, which Chisinau sees as a Russian political move.

The suspension of gas supply to the mentioned region seriously threatens the energy stability of the whole of Moldova, considering that the largest power plant in the country is located in Transnistria. The power plant itself switched to coal in this situation, but it does not produce enough electricity for all needs. The industry is in a difficult state, and so is the entire economy. Occasional power outages have already been registered in Transnistria, and it is estimated that coal supplies could be used up soon, which would make the situation even worse.

Moldova has accelerated the procurement of additional energy, relying more on Romania and other European sources, and thus for now mass power outages have been avoided, but the costs have increased, which the citizens of Moldova are already feeling through increased bills.

Energy portal

Source: energetskiportal.rs