Moldova announces state of emergency over gas shortages

The ex-Soviet country's parliament has approved a government-requested state of emergency until November 20 as it tries to ease gas shortages amid soaring world energy prices.

Moldova has been unable to agree on a new energy deal with its main supplier, Russia's Gazprom, says Prime Minister Natalia Gavrilita.
Reuters Archive

Moldova has been unable to agree on a new energy deal with its main supplier, Russia's Gazprom, says Prime Minister Natalia Gavrilita.

Moldova has declared a 30-day state of emergency in an effort to secure the ex-Soviet country cheaper natural gas from Europe after traditional supplier Moscow hiked prices.

The government had been unable to agree on a new energy deal with its main supplier, Russia's Gazprom, and that a state of emergency would allow it to buy gas from other sources, said Prime Minister Natalia Gavrilita on Friday.

"We are in a critical situation. The pressure in the gas transportation system is at a critical level for the functioning of natural gas transportation systems," Gavrilita said, without saying how close the country was to running out altogether.

Moldova would be seeking supplies from EU countries and thanked Romania and Ukraine for already supplying some gas, Gavrilita told parliament.

The month-long state of emergency gives Moldovan utility company Energocom the powers to secure gas from other countries.

READ MORE: Gas prices are on the rise. Here’s why

Loading...

Skyrocketing gas prices

The country of 2.6 million people wedged between Romania and Ukraine gets gas from Russia via its pro-Russian separatist region of Transnistria and Ukraine.

Russia's Gazprom hiked prices from $550 per thousand cubic metres last month to $790 this month  — a level Deputy Prime Minister Andrei Spinu said was "not justified and not realistic" for Europe's poorest country.

While Gazprom and its daughter company Moldovagaz last month agreed to extend their existing contract for supplies until October 31, Gavrilita said Moldovagaz "is not keeping its word".

The company is not providing the required volumes of natural gas, she said, with Moldova receiving a third less than usual for October.

The prime minister said Moldova and Gazprom were continuing negotiations but that the ex-Soviet country has "no confidence" in the success of the talks and "must take action" or be "left without gas".

The country's gas shortages come amid skyrocketing gas prices that some in Europe have blamed on Moscow not providing additional supplies to put pressure on the continent.

Two senior officials from Moldova would travel to Moscow this week for holding gas talks, the government said.

READ MORE: Russia's Gazprom completes Nord Stream 2 gas pipeline construction

Route 6