Starved of Russian gas, industry shuts down in breakaway Moldovan region

The breakaway Moldovan region is facing a severe crisis as Russian gas supply has come to a halt, forcing industries to shut down. This region, which has been reliant on Russian gas, is now struggling to cope with the sudden loss of energy supply.¹

Moldova's government is taking measures to mitigate the situation by reducing energy consumption by at least a third. They plan to meet 38% of their energy needs through domestic production, which includes 10% from renewable sources.

All industrial enterprises are idle, with the exception of those engaged in food production - that is, directly ensuring food security for Transdniestria," Sergei Obolonik, first deputy prime minister of the region, told a local news channel.

"It is too early to judge how the situation will develop... The problem is so extensive that if it is not resolved for a long time, we will already have irreversible changes - that is, enterprises will lose their ability to start up."

The situation highlights the region's vulnerability to external factors, particularly its dependence on Russian gas. As the region navigates this challenging situation, it's essential to explore alternative energy sources and reduce reliance on external supplies.

Ukraine had allowed Russia to keep pumping gas across its territory despite nearly three years of war,and was earning up to $1 billion a year in transit fees. But Kyiv refused to renew a five-year deal that expired on Wednesday.

European gas buyers such as Slovakia and Austriahad prepared for the cut-off by securing alternative supplies. But Transdniestria - despite its ties to Moscow and the presence of 1,500 Russian troops there - has been crippled.

Russia had been pumping about 2 billion cubic metres of gas per year to Transdniestria - including the power plant which also provided energy for the whole of Moldova, a country of 2.5 million people that wants to join the European Union.

Moldova has a long history of gas payment disputes and tense relations with Russia. The ex-Soviet republic is trying to cut energy consumption by at least a third and import more than 60% of its needs from neighbouring Romania.