Moldova's separatist region cuts gas as Ukraine transit deal runs out

By Alexander Tanas

CHISINAU (Reuters) - Authorities in Moldova's separatist Transdniestria region on Sunday cut off gas supplies to several state institutions as a deal allowing Russian gas to transit through Ukraine comes to an end at the close of the year.

The cutoff was imposed two days before the transit deal runs out, following Ukraine's refusal to extend it in wartime. It has sparked fears of mass New Year power cuts in Moldova, an ex-Soviet state between Ukraine and Romania.

The company that distributes gas in the pro-Russian separatist region, Tiraspoltransgaz, said 12 state institutions were cut off around the towns of Dubasari and Bender, on the border with government controlled-areas of Moldova.

They included four education establishments and a medical facility as well as a police station and a prosecutor's office.

The cuts were imposed a day after Russian energy giant Gazprom said it would suspend gas exports to Moldova from 0500 GMT on Jan. 1 due to unpaid debt by Moldova.

Moldova disputes the allegations of arrears for past gas shipments and accuses Russia of destabilising the country.

Russia supplies Moldova with about 2 billion cubic metres of gas per year, which has been piped via Ukraine to pro-Russian separatist Transdniestria, where a thermal plant produces cheap power that is sold to government-controlled parts of Moldova.

"The Kremlin's real goal here is to destabilise Moldova and plunge it into chaos," former Energy Minister Victor Parlicov told Radio Moldova. Parlicov was dismissed for failing to tackle the energy crisis after meeting the head of Gazprom last month.

Moscow denies all such allegations.

Both government-controlled Moldova and Transdniestria have imposed economic states of emergency, including measures to reduce power consumption at peak hours.

Parlicov dismissed Gazprom's claim Moldova had accumulated arrears of $709 million, saying that since 2022 all gas shipped to Moldova had been directed straight to separatist Transdniestria. The country has since diversified its sources and secured gas supplies from Romania and other countries.

Moldova says an international audit of its transactions with Gazprom puts the payment arrears at $8.6 million.

Moldovan Prime Minister Dorin Recean has condemned Gazprom's decision ahead of the total shutdown of Russian gas exports via Ukraine, also intended for Slovakia, Austria, Hungary and Italy.

Moldova has urged Gazprom to consider other routes to supply the country, particular through the Turkstream pipeline in Turkey and from there through Bulgaria and Romania.

Slovak Prime Minister Robert Fico, who met Russian President Vladimir Putin in the Kremlin last week, has criticised Ukraine for refusing to extend the deal.

His foreign minister, Juraj Blanar, on Sunday rejected Ukrainian President Volodymyr Zelenskiy's suggestion Fico opened a "second energy front" against Kyiv.

(Reporting by Alexander Tanas, Writing by Ron Popeski, Editing by Chris Reese)