News wire — Moldova tightened restrictions on electricity exports on Friday to try to ease a shortfall in supplies, and the government faced new pressure to end the country’s dependence on Russian gas.
Moldova’s economy has been hit by soaring energy prices and the war in neighbouring Ukraine, and its energy problems grew this week when Kyiv suspended electricity exports after Russian missile strikes on Ukraine’s energy network.
Moldova asked people on Wednesday to cut back on electricity use at peak times, and the national energy regulator said on Friday “green” producers would from Oct. 15 have to sell electricity on the domestic market rather than export it.
The export ban already applied to electricity generated using gas, fuel oil and coal, but the regulator said the situation on Moldova’s electricity market had become “alarming.”
Moldova also faces problems with supplies of natural gas, for which it relies on Russian state energy company Gazprom.
Gazprom has said it could shut off gas to Moldova unless all contractual obligations are met by Oct. 29, including settlement of a long-standing debt of about $709 million for past supplies.
Vadim Ceban, the head of gas utility Moldovagaz, said on Thursday evening the government must work out a plan to pay for gas supplies. Ceban said Moldova had to pay for 53 million cubic metres (cbm) of gas to cover October requirements, but that figure would rise sharply next month.
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“In November, with the cold weather, the volume of gas is to rise to 150 million cbm and we will have to think about how to pay for it,” Ceban said in televised comments.
Moldova now pays for 50% of its supplies in advance with the rest settled later. Under the terms of a five-year contract, Moldovagaz and Gazprom are due to agree by the beginning of November volumes of gas supplies for the following 12 months.
“Moldova’s dependence on Gazprom must end as soon as possible,” Dumitru Alaiba, a senior member of parliament, said on Friday.
The government has said it will secure gas supplies from other sources but thousands of people have taken to the streets and set up tents outside parliament and President Maia Sandu’s residence, angered by high prices and seeking the government’s resignation.
Reporting by Alexander Tanas; Writing by Ronald Popeski and Timothy Heritage; Editing by Edmund Klamann and Emelia Sithole-Matarise – Reuters
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