Moldova is grappling with an imminent energy crisis as the separatist region of Transdniestria has cut off gas supplies to several state institutions. This decision comes just before the expiration of a critical transit deal allowing Russian gas to pass through Ukraine, a pact set to lapse on December 31, 2023. The interruption follows Ukraine's refusal to prolong the agreement amidst ongoing conflict, heightening concerns of mass power outages across the country as it approaches the New Year (Reuters).

Over the weekend, authorities in Transdniestria, supported primarily by Russian energy, cut off gas service to twelve public institutions, impacting essential services, including education and healthcare facilities. This action was prompted by a Gazprom announcement indicating the suspension of gas exports to Moldova, citing unpaid debts alleged to total nearly $709 million. However, the Moldovan government disputes these claims, asserting that payments have been made and accusing Russia of attempting to destabilize the nation (Reuters).

In response to the looming energy crisis, Moldovan Prime Minister Dorin Recean has ordered preparations for the potential nationalization of Moldovagaz, a company significantly connected to Gazprom. Recean emphasized the need for the country to regain control over strategic sectors, as he mentioned during a recent government assembly, “These facilities were also taken away from us once... And we should return them to state ownership” (Reuters).

The stakes are high; Gazprom supplies Moldova with around 2 billion cubic meters of gas annually, which is crucial for powering the region, particularly Transdniestria, where gas is converted into cheap electricity sold to government-controlled areas. With the failure to secure a new gas transit deal through Ukraine, both Moldova and Transdniestria have declared economic states of emergency, implementing measures to reduce power consumption during peak hours.

Amid the escalating energy crisis, analysts suggest that legislative changes will be necessary to facilitate any nationalization process for Moldovagaz. As Moldova prepares to navigate these turbulent waters, it is simultaneously seeking alternative routes for gas supply through other means, including a proposed Turkstream pipeline that could provide a lifeline to the beleaguered nation (Reuters).

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