Moldova’s breakaway region of Transnistria has secured a gas supply deal with MET Gas and Energy Marketing following its refusal of further European Union financial assistance, according to Moldovan Prime Minister Dorin Recean. This move raises concerns about the region’s long-term energy security and political stability.
The EU had provided €20 million ($21 million) to Transnistria, a predominantly Russian-speaking territory with over 350,000 residents, to cover gas purchases from February 1st to 10th. This emergency funding followed a disruption in Russian gas flows at the start of the year, leading to an energy crisis and rolling blackouts. Transnistria had relied on heavily subsidized Russian gas for over two decades.
However, the region declined a subsequent EU aid package of €60 million. Prime Minister Recean stated that the refusal stemmed from conditions attached to the aid, which included a requirement for Transnistria to gradually increase consumer gas tariffs.
“The decision made by the Tiraspol regime leaves the inhabitants of Transnistria in a precarious situation, facing ongoing uncertainty about their gas supply,” Recean commented in a Facebook post. “This solution fails to address the underlying long-term problem.” Despite this, Recean assured that Moldova would not obstruct the gas delivery to Transnistria, preventing a humanitarian crisis.
Under the new agreement, MET Group will deliver gas to the Moldovan border, where Moldovagaz, Moldova’s state-owned gas company, will then transport it to Transnistria. This transfer will occur under a pre-existing agreement with Tiraspoltransgaz, the region’s gas distributor. Dubai-based JNX General Trading LLC will finance the gas purchase from MET Group, while Tiraspoltransgaz will prepay Moldovagaz for transit costs through Moldova.
Gas deliveries are anticipated to commence on February 13th, lasting for 16 days, with a volume of 3 million cubic meters per day. While facilitating this transit, Recean indicated that Moldova expects reciprocal actions from Transnistrian authorities, such as the release of political prisoners and permission for Moldovan national television broadcasts within the region.
MET Group confirmed its readiness to supply gas to any liquid point in Europe, including Moldova, contingent upon the cooperation of Ukraine’s Gas Transmission System Operator for transit. The Swiss-based company has engaged in discussions with the Ukrainian operator regarding this matter. MET Group clarified that it remains neutral on the funding mechanisms for Moldovan gas purchases and expressed support for Moldova diversifying its gas sources, including utilizing the EU aid package.
Vadim Krasnoselsky, the leader of Transnistria, attributed the gas deal with MET Group to Russian financial and operational support, acknowledging a loan from the Russian Energy Ministry. This statement underscores the continuing influence of Russia in the region.
This complex situation highlights the geopolitical challenges facing Moldova and Transnistria, particularly in the context of European energy security and the ongoing conflict in Ukraine. The long-term implications of Transnistria’s reliance on non-EU gas sources and its relationship with Russia remain to be seen. Moldova continues to seek ways to ensure stable and affordable energy for all its citizens, including those in Transnistria.
