"Failed strategy": how Moldova plans to overcome the energy crisis

Moldova has declared a state of emergency for 30 days due to the energy crisis.

This was reported by the government of the republic.

During this time, Chisinau plans to create conditions for the prompt purchase of missing volumes of natural gas.

Moldova has already begun to disconnect industrial consumers from the supply of blue fuel.

As a result, workers at the Ispan-Lux ceramic tile factory in Taraclia protested.

Due to the energy crisis in the republic, even the gas supply to the Eternal Flame at the Eternity Memorial Complex has been cut off.

As the Prime Minister of Moldova Natalia Gavrilitsa clarified during a briefing, the introduction of an emergency is associated with a record low pressure in the country's pipelines, and the supplied gas volumes in October were covered only by 67% due to the absence of an agreement with a Russian supplier.

According to the head of government, Chisinau will continue negotiations with Gazprom on a new contract for the supply of blue fuel.

“We intend to continue negotiations with Gazprom to find a long-term solution based on the commercial interests of both countries.

Negotiations got off the ground, but there is no final decision yet, and there is no certainty that it will be achieved, "TASS quoted her as saying.

Gavrilitsa also added that during negotiations with Gazprom, the state-owned company Energocom will be instructed to purchase the necessary volume of natural gas from alternative sources to overcome the energy crisis.

On October 22, in Kiev, Moldovan Foreign Minister and Deputy Prime Minister Nikolai Popescu held talks with Naftogaz director Yuri Vitrenko.

According to the press service of the Moldovan Foreign Ministry, the parties discussed technical solutions that can be implemented in cooperation with the Ukrainian authorities for the uninterrupted supply of natural gas to Moldova.

In addition, Ukraine has promised to help its Moldovan partners supply gas on a refundable basis.

However, what volumes are being discussed is not specified.

Earlier, on October 11, the Deputy Prime Minister of Moldova, Minister of Infrastructure and Regional Development Andrei Spinu announced the desire of Chisinau to sign a long-term contract for the supply of blue fuel with Gazprom at favorable prices.

He also noted that the Moldovan side is also considering options for deliveries from Romania or other EU countries, as well as from Ukraine.

Political context

Recall that the contract for the supply of Russian gas to Moldova was extended until the end of October.

Until the end of the month, the republic will import fuel at the market price - about $ 790 per 1,000 cubic meters.

At the same time, on October 5, Andrei Spinu said on the air of Pro TV that Chisinau hopes to extend the agreement with Gazprom and purchase gas in winter for $ 220-280 per cubic meter.

m. A few days later, he said that Moldova expects to come to an agreement with the Russian side on a long-term contract on preferential terms, calling the current market prices unrealistic.

The minister also asked to extend the contract "on the terms of 2019".

On October 15, the Moldovagaz company called on the population of the republic to temporarily reduce the daily consumption of blue fuel due to the tense situation in the energy market.

Moldovan citizens were asked to turn off individual heating systems while they are not at home or in the workroom.

In addition, the company proposed to reduce the power consumption of gas appliances at night.

Against the background of the energy crisis and negotiations with Gazprom, in addition to the intentions to buy gas from other countries, Moldova is betting on the help of the European Union. So, on October 21, the government of the republic announced that Chisinau will begin negotiations with the European Investment Bank on the implementation of the project "Energy Efficiency in the Republic of Moldova" and obtaining a loan for this purpose in the amount of € 30 million (more than 2 billion 461 million rubles).

“Thus, the Republic of Moldova should receive a loan of € 30 million from the European Investment Bank, another loan of € 30 million from the EBRD (European Bank for Reconstruction and Development.

), a grant of € 15 million (over 1 billion 230 million rubles

) from the European Commission Neighborhood Investment Platform (NIP), as well as a grant of € 500 thousand (more than 41 million rubles -

) from the Eastern Partnership Technical Assistance Trust Fund (EPTATF) with a project implementation period four years (2022-2025), ”the Moldovan government said in a statement.

It is also specified that the main category of project beneficiaries will be state institutions: hospitals, kindergartens and schools.

"Blindly be guided by the EU guidelines"

The reasons for the energy crisis both in Moldova and in other EU countries were the miscalculations of the authorities of these states, which refused long-term contracts for the supply of Russian gas, experts say.

“The republic, like the EU countries, faced unexpectedly high prices for natural gas.

But the Moldovan authorities apparently hoped that the situation would change, and took a wait-and-see attitude.

The fact that it was necessary to conclude a contract with Gazprom was clear to Chisinau for a long time, but they chose to hold out until the last, hoping to wait for more favorable market conditions, which never appeared, "said the director of the Institute for the Study of World Energy Markets in an interview with RT. Energy Research RAS Vyacheslav Kulagin.

As a result, when the contract expired, the prices renewed the record, and in these conditions it became extremely difficult for Moldova to negotiate with Gazprom, the analyst added.

• The extinguished Eternal Flame in the memorial complex "Eternity" in Chisinau

• RIA News

• © Alexander Svyazin

“The market price seems too high to the Moldovan side.

As a result, the negotiations dragged on, the agreement ended.

But Gazprom met halfway, an interim solution was reached, the terms of the previous contract were partially preserved - the deliveries were actually extended for a month.

But the question of a new agreement is still in limbo, ”says Kulagin.

In addition, according to Vladimir Olenchenko, senior researcher at the Center for European Studies at the Institute of World Economy and International Relations, Russian Academy of Sciences, Moldova, like other European countries, did not take into account seasonal and market changes in the gas market.

“Chisinau decided to follow the example of Brussels, but this strategy turned out to be a failure.

Now, the dramatic changes in the gas market are perceived by the Moldovan authorities as a drama.

In this situation, there is little they can do.

And all their activity is, rather, an imitation of violent activity.

By and large, the republic has only one option - to purchase Russian gas at market prices directly or through intermediaries, ”the analyst says.

Olenchenko also draws attention to the fact that the claims of the Moldovan side against the Russian Federation regarding the gas price are, in fact, unfounded.

“The republic decided to be blindly guided by the EU guidelines, did not strain too hard and think, calculate how to mitigate possible sharp market fluctuations.

Nobody in Moldova bothered about this.

Instead, political slogans were highlighted: Moldova intends to distance itself from Russia, it emphasizes its focus on the EU.

But the reality, when the Moldovan industry simply does not have enough gas, leads Chisinau to the need to cooperate with Moscow, ”the expert explained.

From the point of view of Vyacheslav Kulagin, the most profitable option for Chisinau now is to negotiate supplies directly with Gazprom.

If consensus is not reached, the energy crisis in the republic will only deepen, the expert predicted.

“Moldova will have to negotiate with other countries for the supply of the same Russian gas, but with additional transportation costs and at unfavorable prices.

At the same time, the EU will not be able to help in any way, because it also has big problems in the energy market.

And the loans that Chisinau expects to receive from the European Union will not be able to solve the difficulties with paying for gas.

After all, this money will have to be given, and even with interest.

In addition, it may never come to the receipt of these funds, ”the expert summed up.