EU Steps in as Energy Crisis Unfolds in Pro-Russian Region Following Russian Gas Cutoff

The European Union is taking action to support Moldova amid an escalating energy crisis triggered by Russia's decision to halt gas supplies to the country. This cutoff has particularly affected the pro-Russian region of Transnistria, which has declared independence from Moldova but lacks international recognition.

Since the Russian energy giant Gazprom ceased its gas deliveries, the region has been plunged into a severe energy shortage, leaving over 300,000 residents without adequate heating and gas supplies. The EU has committed to providing 250 million euros to enhance Moldova's energy security as part of a broader strategy to reduce the country's reliance on Russian energy sources.

According to the EU Commission, this initiative is aimed at fully integrating Moldova into the European energy market within a two-year timeframe. The halt in gas deliveries, which began at the start of the year, stems from a financial dispute between Gazprom and the Moldovan government. Consequently, approximately 400,000 individuals in Transnistria are now without natural gas.

Both Moldova and Transnistria declared a state of emergency due to the impending gas transit halt through Ukraine, following Ukraine's announcement that it would not renew an expiring transit agreement with Russia. However, the situation deteriorated further when Russia independently decided to cut off supplies to Moldova.

The EU's intervention is framed as a response to what it describes as Russia's tactic of energy coercion against Moldova, reminiscent of its past strategies toward EU member states. The EU aims to mitigate this influence through financial support and strategic energy partnerships.

EU Commission President Ursula von der Leyen emphasized the need for a comprehensive approach to end Russia's energy leverage over Moldova. Additionally, EU Enlargement Commissioner Marta Kos highlighted that enhancing Moldova's economy and energy security is crucial for the country's prosperity in Europe.

In response to the EU's initiative, Moldova's President Maia Sandu expressed gratitude for the support, acknowledging the EU's consistent presence during challenging times. Part of the EU's funding will be allocated to offset rising electricity prices, which have nearly doubled since the supply cutoff.

Furthermore, the EU plans to allocate 60 million euros specifically for the residents of Transnistria, contingent upon the implementation of measures to uphold fundamental rights and freedoms. Moldova has already begun transporting EU-funded gas into Transnistria to alleviate the crisis.

Previously, the EU had provided emergency aid of 30 million euros to Moldova to address immediate energy needs. The Moldovan government has accused Russia of orchestrating the current energy crisis as a tactic to destabilize the country ahead of anticipated parliamentary elections in the fall, potentially paving the way for a pro-Russian administration.

Historically, Russia has supplied Moldova with about two billion cubic meters of gas annually, primarily directed to Transnistria, where the fuel is often provided at no charge. This gas is crucial for the Cuciurgan power plant, which generates affordable energy for Moldova, supplying approximately 70 percent of the country's electricity needs. However, Russia is demanding a payment of 709 million dollars from Moldova for outstanding gas debts, while Moldova contends that the actual outstanding amount is only 8.6 million dollars.