Posted By Global Banking and Finance Review
Posted on December 30, 2024
CHISINAU (Reuters) - Moldovan Prime Minister Dorin Recean ordered his government on Monday to start preparing for the possible nationalisation of gas company Moldovagaz, which is 50%-owned by Russia's Gazprom.
Gazprom has said it plans to suspend gas exports to Moldova from 0500 GMT on Jan. 1 due to unpaid debts.
Speaking at a government meeting, Recean told his justice minister to prepare legislative changes that would allow the nationalisation.
"We should act in strategic sectors. By the way, these facilities were also taken away from us once ... And we should return them to state ownership," Recean said, referring to the ownership structure when the company was set up in 2013.
In addition to Gazprom's stake, pro-Russian enclave Transdniestria holds about 13%. Moldova's government owns 35.6%.
Russia supplies Moldova with about 2 billion cubic metres of gas per year. It is piped via neighbouring Ukraine, whose gas transit deal with Russia expires on Dec. 31. Kyiv has refused to extend the gas transit deal as its war against Russia approaches its third year.
Moldovagaz transports Russian gas to Transdniestria, where it is used to generate cheap power that is sold to government-controlled parts of Moldova.
Moldova disputes it is in arrears for previous gas shipments and accuses Russia of destabilising the country, which Moscow denies.
Moldova and Transdniestria have imposed economic states of emergency, including measures to reduce power consumption at peak hours.
Analysts said that parliamentary approval would be required to allow any nationalisation to go ahead.
(Reporting by Alexandr Tanas, writing by Olena Harmash; editing by Barbara Lewis)