Transnistria declares economic emergency amid gas supply fears
The leader of the unrecognised region of Transnistria in Moldova, Vadim Krasnoselski, has signed a decree to introduce a state of emergency in the economy. This is due to the potential disruption of Russian gas supplies to the area. The decree requires approval from the local parliament.
The signed decree proposes a 30-day state of emergency in the economy. During this period, all enterprises in Transnistria must rationally use gas and other energy resources. An export ban on energy resources is also imposed.
The decree is subject to approval by the Transnistrian parliament. Members of parliament are scheduled to discuss this issue on 11 December.
The situation arises from Ukraine's decision not to extend the contract for the transit of Russian gas to European countries, which expires on 1 January 2025. Currently, Moldova receives gas from Russia under a contract valid until October 2026.
What about gas for Moldova?
Since autumn 2022, Gazprom has reduced gas supplies to 200 million cubic feet daily, significantly below Moldova’s winter consumption needs. Consequently, since the end of last year, all Russian gas has been allocated to Transnistria.
Gazprom is prepared to supply gas to Transnistria via an alternative route. However, the Russians require a resolution to the Moldovagaz debt issue. Gazprom alleges that over 700 million dollars are owed, while Moldova claims it is less than 9 million.
Transnistria is located within Moldova's borders and is not internationally recognised as a separate state. The authorities and residents are predominantly pro-Russian, with Russian troops stationed there, and Moscow maintains connections with the local authorities.
