Published by Global Banking and Finance Review
Posted on January 27, 2025
KYIV (Reuters) - The European Union will provide 30 million euros ($31.5 million) to purchase and transport natural gas to Moldova's breakaway region of Transdniestria, Moldovan Prime Minister Dorin Recean said on Monday.
Tens of thousands of people in Transdniestria have been without gas or winter heating since Jan. 1 when Russia's Gazprom suspended gas exports to the region, citing an unpaid Moldovan debt of $709 million that Chisinau does not recognise as valid.
"The EU is immediately providing financial assistance in the amount of 30 million euros for the purchase of the necessary amount of natural gas," Recean said.
Recean said that Moldova had approved the transfer of an additional 3 million cubic meters of gas to Transdniestria.
Recean confirmed during a press-conference that Hungarian company MOL intends to sign a contract with Moldovagaz to supply gas to Transdniestria.
The announcement comes after the leader of the region, gripped by power and heating cuts, said on Friday that gas reserves would be exhausted within days and urged the central government to end "artificial delays" and provide new supplies.
Gas will be used for electricity production at the thermal plant in Transdniestria that provided most of the power in government-held areas of Moldova. It will also be used for consumption in Transdniestria from Feb. 1 to 10, the prime minister said.
Moscow blames the suspension of gas supplies on pro-Western Moldova and Ukraine, which refused to extend a five-year gas transit deal that expired on Dec. 31 on the grounds that the proceeds help fund Russia's invasion.
"In parallel, the Moldovan government and the EU are working on a two-year aid package to strengthen the energy resilience of the entire country," Recean said.
($1 = 0.9515 euros)
(Reporting by Alexander Tanas.; Editing by Gareth Jones and Mark Potter)
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