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Moldova, Russia hold talks on Transdniestria gas supply amid Ukraine transit uncertainty



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Nov 25 (Reuters) -Moldova's energy minister held talks with the head of Russian gas giant Gazprom GAZP.MM on Monday to discuss alternative routes to supply Moldova's breakaway region of Transdniestria with Russian gas if transit through Ukraine stops, Moldova said.

The gas transit agreement between Ukraine and Russia ends on Dec. 31and Ukraine has said it will not extend it. The economy of the Russian-backed Transdniestria region depends heavily on Russian natural gas supplied via Ukraine.

"They (energy minister Victor Parlicov and CEO Alexei Miller) focused on alternative routes for gas supplies to the Transdniestrian region of Moldova, if transit through Ukraine is disrupted," Moldova's energy ministry said in a statement after the talks in St Petersburg.

Transdniestria has a large power plant fueled by Russian gas that supplies the unrecognised breakaway region and most of the government-controlled part of the country with electricity. It is a vital source of revenue for Transdniestria's economy.

Under pro-European President Maia Sandu, Moldova has cut its dependence on Russian gas since 2022, turning to European suppliers, while Gazprom has continued to supply Transdniestria for free in practice.

The talks marked a rare official meeting between Russia and Moldova. Relations between the two countries have frayed since Russia's 2022 invasion of Ukraine, which Moldova has strongly condemned.

Parlicov told Reuters that the talks were critical to ensuring stability in Moldova and the region.

"We are not waiting until the last minute to address these challenges and are taking calculated steps to manage any risks. Engaging in dialogue with Gazprom is a necessary part of assessing the state of play and identifying workable solutions," he said.

"As part of this effort, I have met Gazprom as the deadline for reserving capacity on an alternative route approaches."

If Ukraine goes through with its plan to end Russian transit next year, an alternative route for gas supplies to Transdniestria could pass through the TurkStream pipeline to Turkey and then through Bulgaria and Romania.

A Gazprom statement said the two sides "agreed to continue discussing options for organising deliveries of Russian natural gas to Moldova from Jan. 1, 2025".

Parlicov said Moldovagaz, a Gazprom subsidiary which organises gas distribution in Moldova, had proactively contacted Gazprom to explore options for deliveries via an alternative route.

"While we have not yet received a response, we remain fully engaged in exploring all viable options to safeguard Moldova’s energy needs," Parlicov said.

"The destabilisation of Moldova's Transdniestria region serves no one's interests — not Moldova's, not Ukraine's, and certainly not the European Union's," he said.

Also discussed were what Gazprom described as Moldova's debts for previous deliveries and the composition of the board of Moldovagaz, the energy ministry said.



Reporting by Tom Balmforth and Alexander Tanas; editing by Jonathan Oatis

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