Moldovan Prime Minister Dorin Recean has asked the Parliament to establish a state of emergency in the energy sector as of 16 December. At the same time, the prime minister announced that the minister of energy, the director of Energocom and a member of the Moldovagaz Board of Observers have been dismissed. “These people either blocked or did not act at the right time to purchase gas at the most favourable price. Instead of looking for culprits and passing the responsibility from one to another, their task was to provide the country with gas at the right time,” the prime minister said.
“The state of emergency in the energy sector means that there is a risk of at least partial, if not total, disruption of deliveries, both of electricity in our case, but also of other types of energy. This would mean that the energy exports could be banned,” explained Dorin Recean. “In order to exclude any risk, state-owned energy companies must ensure that Moldova will be able to import more electricity and gas through neighbouring countries, if needed,” the official added.
On 29 November, the National Energy Regulatory Agency of the Republic of Moldova (ANRE-MD) approved new tariffs for natural gas consumed by households as of 1 December. They are 27.5% higher, i.e. 16.74 Moldovan lei per cubic metre of gas.
Beyond individual responsibilities, the decisions come against at least three extremely complicated circumstances. In fact, as early as this summer, the Commission for Exceptional Situations of the Republic of Moldova has already put the gas market on early alert.
The stalemate imposed by Gazprom on Moldovagaz
As a reminder, Moldovagaz has an interim management since this summer. The Ministry of Energy has organised a competition for the selection of candidates for four of the 9 vacant positions on the Moldovagaz Board of Directors (BoD), who will be put forward on behalf of the institution. In September, the Ministry of Energy submitted the candidates for the Moldovagaz Board of Directors, including Dorin Junghietu (READ MORE!), who was nominated for the position of Chairman of the Board.
According to the company’s bylaws, Moldovagaz’s Board of Directors is composed of 9 members, appointed at the proposal of the main shareholders for a 3-year term, of which five members are from Gazprom. The other four, including the Chairman, are appointed by the Moldovan Government and approved by Gazprom.
The procedure has not been formally finalised, as Gazprom is late in approving the new members appointed by the Chisinau authorities. As a result of the unclear leadership of Moldovagaz, the company’s strategy is viewed with suspicion and decisions, mainly on gas purchases and the demand for a tariff increase, have provoked widespread public criticism.
Uncertainty over Russian gas supplies after 1 January 2025
A transit agreement signed five years ago by Moscow and Kiev on Russian gas exports to Europe via Ukraine expires at the end of this year. It is unclear whether Gazprom will still be able or willing to deliver gas to Moldova, mainly to the Transnistrian region, where the Cuciurgan power station is located. It plays an essential role for the economy of the region, but also for Moldova’s energy security.
READ MORE Mihai Melintei (Energy Analytical Studies): The energy security of the Republic of Moldova depends on the Transnistrian file
In this context, any natural gas procurement strategy on the part of Moldovagaz or Energocom was difficult to outline and is easy to criticise post-factum. Purchasing gas “at the most convenient price” and analysing the opportunity are impossible to do on strictly economic criteria when geopolitical players have direct levers to influence decisions.
Political instability in the Republic of Moldova
The Bloc of Communists and Socialists (BCS) in the Moldovan Parliament tabled on 5 December a new motion of no confidence in the government led by Prime Minister Dorin Recean. The Socialists cite in particular the situation in the energy sector, where they say the state of affairs “has deteriorated”. BCS MPs claim that the government has not honoured its obligation to guarantee energy stability and that it has not ensured the implementation of “clear policies and strategies to ensure the country’s security”. The lawmakers explicitly referred to the recent increase in natural gas tariffs.
In reply, the representatives of the Action and Solidarity Party (PAS) accuse the BCS MPs of trying to sow panic and weaken the state institutions together with their “Kremlin friends”. The no-confidence motion is the third against the pro-European government backed by PAS and President Maia Sandu.
Backroom games, personal conflicts, unclear responsibilities
The decisions taken by Prime Minister Dorin Recean come, at least in part, in response to the political crisis, in order to reduce the public pressure on the government. The Prime Minister also referred to the “personal conflicts” between Victor Parlicov and Victor Bînzari, which may have contributed to the deepening of the energy crisis.
Former Energy Minister Victor Parlicov, who was dismissed from his post on 5 December, believes that the company Energocom is mainly responsible for the current situation, as it allegedly missed out on gas purchases at favourable prices at the beginning of the year. “The main miss, if you ask me, was made in the first part of the year. No one assumed, especially Energocom, that the gas in stock would be substituted with cheap gas, and the best prices we had, would be used to the full to optimise the gas stock portfolio. Moldovagaz could not do this, in my opinion. Even if it went to the market, I don’t think anyone was selling it to them,” Parlicov said.
READ MORE (IN RO) Experts on Parlicov’s resignation: He ensured energy security in complicated regional context
Victor Bânzari, CEO of Energocom rejects the accusations and says he did his job professionally. “I took part in all the auctions on the stock exchange, proposed volumes and prices. Why didn’t Moldovagaz buy gas, and is it my fault?”.
Sergiu Tofilat, a member of Moldovagaz’s Board of Observers, also rejected the accusations. He insists that the decision to buy gas belonged to Moldovagaz acting director Vadim Ceban, without the Supervisory Board’s approval.
Finally, Vadim Ceban, acting president of Moldovagaz, says that Moldovagaz has already purchased 85 per cent of the gas needed for the right bank of the Dniester in the cold season. “I have said this before, nobody is covering me. I am used to such speculation, it is nothing special for me. But I can say once again that now we should focus on solving the most important problem: gas supply to the Transnistrian region,” Vadim Ceban said.