MOSCOW. December 28. /TASS/. Gazprom is to limit natural gas supplies to Moldova up to zero from January 1, 2025 due to contract violations by the Moldovan side and refusal to settle the debt for supplies, the Russian holding company said in a statement.

Considering that the Moldovan side's refuses to settle the debt for gas supplies, Gazprom sent a notice to Moldovagaz on December 28 that the Moldovan side regularly fails to fulfill its payment obligations under the current contract, which is a material breach of its terms.

"In this regard, based on the provisions of the contract and applicable norms of Russian legislation, PJSC Gazprom will introduce a restriction on natural gas supplies to the Republic of Moldova to 0 cubic meters per day from 8:00 a.m. Moscow time (5:00 a.m. GMT) on January 1, 2025," the Russian company said in a statement. The company notes that the restriction will remain in effect until Gazprom notifies Moldovagaz in writing otherwise.

Gazprom reserves all its rights, including the right to unilaterally terminate the contract and the right to demand compensation for all damages and payment of fines from Moldovagaz for failure to fulfill and/or improper fulfillment of the Moldovan company's obligations under the contract, the Russian gas holding said.

On gas situation in Moldova

Moldova is experiencing an crisis due to rising prices on energy carriers. This has triggered price surges in the country and opposition protests.

On December 13, the country introduced a state of emergency due to the threat of a humanitarian crisis in connection with the possible termination of Russian gas transit through Ukraine.

According to Prime Minister Dorin Recean, in the event of a shortage of energy resources and the shutdown of the Moldovan power plant in Transnistria, both banks of the Dniester can only receive electricity from Romania, which also faced a shortage during this period.

Since October 2022, Gazprom, has reduced its daily supply volume by 30%, to 5.7 million cubic meters. Before that the Russian company was the only supplier of gas to Moldova.

In this situation, Chisinau decided to redirect these volumes to Transnistria, where Russian gas also generates up to 80% of the electricity consumed by Moldova.

For its part, Gazprom's management recommended that Moldova discuss with Ukraine the possibility of maintaining gas transit, but the republic's authorities got a refusal in Kiev. Moldovan experts also noted that Chisinau had violated contractual obligations related to the settlement of gas debt, so the Russian gas holding could terminate the contract at any time.

Relations between Moldova and Russia began to deteriorate after Maia Sandu won the presidential elections in 2020 and her Party of Action and Solidarity came to power in 2021. Two years ago, Moldova joined the anti-Russian sanctions, and dozens of Russian diplomats were expelled from Chisinau.