Friday 29 October 2021
Gas dispute comes to a head
Poor Moldova defends itself against Russia
David versus Goliath: The small Republic of Moldova rebels against the great Russia. The point of contention is Russian gas and the price for it. There is a threat from Moscow to turn off the gas tap. Kremlin critics suspect political reasons.
In the gas dispute with Russia, the impoverished Republic of Moldova warns against taking advantage of its difficult situation. “This abnormal situation in the gas market should not be used to wrest commitments in the face of a lack of alternatives,” said Moldova’s Prime Minister Natalia Gavrilita.
The ex-Soviet republic, which recently declared a state of emergency in view of the severe energy crisis, has so far not been able to agree on terms for a new supply contract with the Russian gas giant Gazprom. It is feared that people in the crisis-ridden country, which is dependent on Russian gas, could sit in the cold in winter.
Moldova is striving for a “normal, predictable relationship with Gazprom that is based on commercial principles,” Gavrilita emphasized. “If we can’t do that, we will have no option but to diversify our sources.” The small republic has been on a pro-Western course since a change of power. Most recently, the EU had pledged additional aid of 60 million euros to alleviate the consequences of the gas crisis. Gavrilita emphasized that it was not about a choice between East and West, but about the best solution for Moldova.
Moldova does not recognize debts to Russia
President Maia Sandu also said that every effort is being made to solve the problems with Moscow. Russia last threatened Moldova with turning off the gas tap in December if the contract with Gazprom is not extended by then. One of the main points of contention between the two countries is that the current price of 790 US dollars per 1000 cubic meters of gas is too high from Moldova’s point of view.
In the past year, Chisinau paid significantly less under what was then a Moscow-friendly government. However, world market prices were also lower at the time. In addition, Russia is demanding settlement of unpaid bills totaling 709 million US dollars. Moldova does not recognize the debt in this way.
Moscow sees itself repeatedly criticized for rewarding the Kremlin’s well-meaning countries – such as Belarus – with cheap gas prices. Gazprom critics also suspect that the Russian side has political intentions in view of the plight of Moldova. The Kremlin denies this. Moscow recently referred to the current high demand for Russian gas and the strong international rise in gas prices.