Gazprom to Halt Gas Supplies to Moldova Over Debt

Gazprom, the Russian energy giant, announced that it will stop gas exports to Moldova on January 1 due to outstanding debts. This situation could lead to a complete shutdown of Russian gas exports to Europe after the expiration of the current transit deal with Ukraine on December 31.

Russian energy behemoth Gazprom revealed plans on Saturday to cease gas exports to Moldova starting from 0500 GMT on January 1, citing unpaid debts by the Moldovan side.

The company has asserted its right to take further actions, including the potential termination of the supply contract with Moldova. This development is a precursor to the eventual cessation of Russian gas exports through Ukraine and onward to Europe, as the existing transit agreement with Ukraine is set to expire on December 31.

Currently, Russia channels approximately 2 billion cubic meters of gas to Moldova annually through Ukraine. This supply reaches Transdniestria, a separatist region that utilizes the gas to produce affordable electricity for the rest of Moldova. With Moldova's population of 2.5 million bracing for anticipated power outages, Ukraine has indicated it will not renew its transit contract with Gazprom.

(With inputs from agencies.)