Gazprom Will Halt Gas Supplies to Moldova Amid Debt Dispute

(Bloomberg) — Russia’s Gazprom PJSC will halt natural gas supplies to Moldova starting on Jan. 1 due to a debt impasse amid a state of emergency in the Eastern European nation’s energy sector.

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The notification sent to Moldovagaz on Saturday said the company “regularly fails to fulfill its payment obligations under the existing contract, which is a significant breach of its terms,” the Russian gas giant said in statement on Telegram. 

Gas flows to Moldova will be reduced to zero from 8 a.m. Moscow time on Jan. 1, with the restriction remaining in force until Gazprom “notifies Moldovagaz in writing otherwise,” according to the statement. 

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Gazprom is demanding $709 million for gas already supplied as well as late payment penalties. The Russian gas producer is a majority shareholder in Moldovagaz and Moldova’s government holds a 35% stake. Of that amount, the country recognizes less than $8 million; its prime minister has called the debt claimed by Gazprom “non-existent.” 

In November, Moldova called on Western countries to provide financial support amid concerns Gazprom will cease supplies to the nation’s pro-Russian breakaway region of Transnistria, which is dependent on deliveries from the company sent via Ukraine. 

That leaves Transnistria vulnerable as a transit deal between Russia and Ukraine expires at the end of the year and the leaders of both nations ruled out the renewal of the agreement. Earlier this week, Russian President Vladimir Putin cast further doubt on the likelihood of a deal to maintain flows via Ukraine.

In the past two years, all of Moldova’s gas imports from Gazprom — equating to 5.7 million cubic meters a day — has been delivered to Transnistria, which turns the gas into electricity for the rest of the country. As a result, a halt in Russian flows would hurt the country as a whole. Earlier this month, Moldovan Prime Minister Dorin Recean warned of a potential humanitarian crisis if deliveries were to stop. 

Moldova will cover its potential power deficit from the spot market, mostly from other European countries, according to Recean.

Following Gazprom’s notification, Moldovagaz head Vadim Ceban said in a Telegram statement that the company “has contracted the necessary volumes of gas, which will fully ensure all consumption” of Moldova, excluding Transnistria, for the first quarter of 2025.

(Updates throughout with details.)

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