Image source: Euronews
Russia is now threatening to cut off gas supplies to Moldova, a country on Ukraine’s southwestern border.
As a result, Europe is preparing for possible cuts in gas supplies from Russia.
The news
Gazprom, a state-owned Russian gas giant, announced on Tuesday that it would halt deliveries to the country next Monday.
They cited claims that Ukraine is holding back some of the gas flowing through its territory.
The company said it would cut off gas flows through the Sudzha transit point in line with claims Ukraine is blocking it from reaching Moldova.
Gazprom shared the news through its Telegram account, saying:
“The volume of gas supplied by Gazprom to the GIS Sudzha for transit to Moldova through the territory of Ukraine exceeds the physical volume transmitted at the border of Ukraine with Moldova.”
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Ukraine responds
Despite Russia’s claims, Ukraine has denied withholding gas supplies from its neighbor.
Ukraine’s state-owned energy company Naftogaz responded to the allegations with a tweet on Tuesday:
“Gazprom accused Ukraine of stealing gas. Once again. In short: this is not true.”
GTSOU
The Gas Transmission System Operator of Ukraine (GTSOU) also issued a statement.
They said Russian gas received at the Sudzha entry point for transport to Moldova was diverted to exit points along the shared border.
According to the operator, Moldova has initiated a “virtual reverse” of part of Russia’s gas imports to Ukraine.
However, they did not provide a reason.
Analysts said the reverse is a joint trade arrangement, in which some of the gas destined for one site is diverted to be stored or sold to another buyer.
Olga Bielkova, director of government and international affairs at GTSOU, said:
“This is not the first time Russia has resorted to using gas as an instrument of political pressure.”
“It manipulates facts to justify its decision to limit further the volume of gas supplies to European countries.”
Meanwhile, director of energy, climate and resources at Eurasia Group Hennig Gloystein says that Moldova has stored some of its gas in Ukraine in the past.
“So the argument that it is being held in Ukraine by Ukraine is moot,” said Gloystein.
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Europe
While Moldova is not a member of the European Union, it is applying to join the Union.
Russia supplies Moldova with over 5 million cubic meters of gas a day, a small fraction of the gas that the Union uses every day to power its homes and businesses.
However, the decision raises the specter of a further reduction in gas supplies to the European Union via Ukraine.
Russia also sends gas to Europe from Turkey to Bulgaria via the TurkStream pipeline.
Natural gas prices in Europe rose 4% on Wednesday. However, at $128 per megawatt hour, gas remains 64% below early 2022 records.
If Russia stops exporting via Ukraine, Europe will lose more than 4 billion cubic meters of gas between December and March.
Even if that happens, Europe probably has the resources to hold out in the short term.
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