Gazprom to halt gas supply to Moldova on January 1st

Investing.com -- Russia's state-owned energy corporation Gazprom (MCX:GAZP ) announced on Saturday that it will cease gas supplies to Moldova beginning on January 1, due to an alleged unpaid debt by the European Union candidate country. In response, Moldova has implemented emergency measures in anticipation of potential power shortages.

Gazprom's online statement indicated that the company retains the right to take additional steps, including the potential termination of its contract with Moldovagaz, the primary gas operator in Moldova. Gazprom owns a majority stake in Moldovagaz. The gas supply cessation will impact the Kuciurgan power plant, Moldova's largest, located in the pro-Russian Transnistria region, which identifies as separatist.

In response to Gazprom's announcement, Moldova has accused Moscow of using energy supplies as a political weapon.

Gazprom is the primary supplier for the Kuciurgan plant, a gas-operated facility that generates a substantial portion of Moldova's electricity. The plant was privatized in 2004 by officials from Transnistria and subsequently sold to a Russian state-owned company. Moldova, which has a government leaning towards the West, has repeatedly voiced complaints about Russian interference and does not acknowledge the privatization of the plant.

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Source: Investing.com