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keeping the residents of Transnistria, the region worst hit by the measure, hostages without heat and light. Russia is using energy as a political weapon, turning the people of the Transnistrian region, which it controls through the illegally stationed army, into hostages, Recean said.
Moldova will handle the situation, will protect all its vulnerable citizens and will sue Gazprom asking for compensations in international arbitration courts for its failure to observe the contractual terms, Recean said.
However, handling the situation will not fully exclude blackouts and will have major economic consequences including higher inflation and subdued industrial activity at a time of marked economic slowdown.
Prior to January 1, Gazprom was delivering 5.7mn cubic metres of gas per day (2 bcm per year) to Moldova, which was fully transferred to Transnistria that hosts the country's major power plant MoldGRES. In 2022, Gazprom already cut its supplies to half of the amounts inked in the five-year contract signed between Moldovagaz and Gazprom in November 2021.
Gazprom’s decision may seem unexpected, after the company has delivered gas for years in Transnistria without expecting payment – but it may be linked to the moderate attitude of the separatist authorities in Tiraspol, which have so far avoided conflicts with the central authorities in Chisinau. Indeed, on December 28, while the Russian gas was still flowing through Ukraine, Transnistria already cut the gas supplies to some public institutions on the territory controlled by central authorities in the Security Zone controlled by both sides but supplied by Tiraspoltransgaz.
Furthermore, the energy shock will surface in higher energy prices, likely to create a public sentiment conductive for anti-government narratives ahead of the parliamentary elections in 2025.
7.7 Energy & Power – Montenegro
Montenegrin power company EPCG plans to invest €300mn in 2025-2027, mainly in renewable energy projects. The investments include the construction of the Gvozd wind park.
EPCG has already signed a €46.4mn deal with a Nordex-led consortium for the design, supply, installation, launch and long-term maintenance of the future wind park. The total value of the project is €82mn, which will be fully financed by a loan from the EBRD. This is EPCG’s first wind project and is also the company’s most significant energy project in more than 40 years.
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