{"id":1359,"date":"2022-03-10T12:26:18","date_gmt":"2022-03-10T12:26:18","guid":{"rendered":"https:\/\/worabia.com\/news\/2022\/03\/10\/russias-war-in-ukraine-could-be-bad-news-for-moldovas-energy-ambitions-3\/"},"modified":"2022-03-10T12:26:18","modified_gmt":"2022-03-10T12:26:18","slug":"russias-war-in-ukraine-could-be-bad-news-for-moldovas-energy-ambitions-3","status":"publish","type":"post","link":"https:\/\/worabia.com\/news\/top-trends\/1359\/","title":{"rendered":"Russia’s war in Ukraine could be bad news for Moldova’s energy ambitions"},"content":{"rendered":"
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As Russia goes to war in Ukraine, ties between Moscow and nearby Moldova could also deteriorate, turning the energy sector into a dangerous battleground. <\/p>\n

While the Russian government was preparing for its recent military offensive, the Ukrainian authorities made the first moves to prepare for the synchronization of its local energy network with the European mainland network. This technical process will allow both Moldova and Ukraine to import electricity from the EU. At present, Moldova is heavily dependent on Russian gas. <\/p>\n

These initial steps went smoothly, Valeriu Pasa, president of WatchDog.MD, a Moldovan think tank, told DW. “The system is very stable. The frequency is OK. It was a successful test.”<\/p>\n

Government sources agreed and stressed that the project was not linked to Russia’s attack on Ukraine.<\/p>\n

“We should not seek to politicize everything here,” a government source told DW. “So far, electricity trading will not be allowed for a year and even that will have to be confirmed.”<\/p>\n

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Interwoven with Ukraine<\/h2>\n

However, the war had an impact on the region’s energy sector. Ukraine and Moldova have decided not to reconnect to the Russian-Belarusian network. At the moment, things are going well. But the dangers are clear. The Russian military could continue to target Ukraine’s energy infrastructure.<\/p>\n

“If Ukraine’s electricity system is affected and is not stable, we will have shortages,” Pasa said. “The most important thing is ours [Moldova’s] “The electrical system can not work if it is isolated from the Ukrainian one.”<\/p>\n

In the case of Moldova, there is no shortage of critical factors to consider.<\/p>\n

“Also, the power plant in Kutsurgan, in the Transnistrian region, needs to be adapted to European standards. But that requires difficult negotiations,” Pasa said.<\/p>\n

The Kuchurgan power station, also known as the Moldovan Regional Power Station (MGRES), provides about 75% of the electricity consumed throughout the country. Moscow-based Inter Rao is a co-shareholder in MGRES. The Kuchurgan plant operates on natural gas supplied by Russia’s Gazprom. Cheap Transnistrian gas has supplied Moldova with relatively low electricity prices in recent years, especially compared to neighboring countries.<\/p>\n

“People in Transnistria have not paid market prices for the last 30 years,” Pasa said.<\/p>\n

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Then last week, the Transnistrian separatist government declared its independence.<\/p>\n

“They did it in the 1990s and last week’s announcements do not change anything,” Pasa said, adding that Moscow had dictated Tiraspol’s decision. “Just a month ago, separatist leader Vadim Krasnoselski wrote letters to Moldovan President Maya Santou saying he was ready to start political talks.”<\/p>\n

The rest of Moldova also imports Russian gas. Last October, Gazprom and the government signed a new five-year contract. In January, the price was over $ 640 (578 euros) per thousand cubic meters. European gas spot prices have now become extremely volatile, reflecting war-related uncertainties. Price levels remain high, recently reaching $ 2,500 per thousand cubic meters.<\/p>\n

According to Bucharest-based energy analyst Cristian Tataru, the price of gas will rise significantly in Moldova as a function of the pricing formula.<\/p>\n

Reverse flows for rescue?<\/h2>\n

The PAS, Moldova’s pro-European party, won an absolute majority in the July 2021 elections. The country, now led by two women, showed an unprecedented level of transparency. An example: The presidential palace, traditionally closed to visitors, now keeps its gates open.<\/p>\n

This opening is reflected in the country’s most diversified energy strategy. Reverse gas flows to Ukraine, which began in 2015, are also available for Moldova. The country can import gas from Romania or Poland via the Inter-Balkan pipeline and the Iasi-Ungheni-Chisinau gas pipeline. If Russia stopped delivering, it is likely that the government would combine these options.<\/p>\n

But it would not be cheap. According to experts, at least energy prices will double, most likely followed by political and social consequences. When tensions between the ruling party of Moldova and Russia doubled in September 2021, the ruling party’s popularity dropped by a third.<\/p>\n

This week gave a look at how the energy problem can get worse. Russia has said it will close Nord Stream 1 – its main gas pipeline to Germany – if Western countries impose a threatened ban on Russian oil. On Wednesday, the United States responded to the threat by banning imports of Russian oil, coal and gas. The European Union, which is much more dependent on Russian energy supplies, has said it will phase out that dependence in the coming years, but has stopped banning it.<\/p>\n

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Many ideas, no clear solution<\/h2>\n

Government sources point to many options for how to increase Moldova’s energy security and political stability, despite high inflation, security concerns and a possible refugee crisis.<\/p>\n

“First, Moldova could participate in programs run by European institutions to test the resilience of the EU ‘s energy infrastructure.” Ukraine has participated in these tests and we should do the same, “said a government source.<\/p>\n

The country is also developing two 400 kilovolt electricity interconnections with Romania: Isaccea to Vulcanesti and Suceava to Balti. “One to Vulcanesti aims to finally bring a connection to Chisinau by 2024,” the government source said. The Suceava-Balti line will take at least two years to complete, another government source said. <\/p>\n

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<\/div>\n<\/p><\/div>\n

Moldova is also trying to increase gas stores in Romania to use them next winter. It could also scrutinize the debts owed by Moldovagaz, the country’s gas distributor, to Gazprom.<\/p>\n

But government sources say this could prove difficult. Gazprom may not accept the result.<\/p>\n

“Gazprom delivered gas to Moldovagaz and received no payments. It raised $ 750 million in 20 years, including sanctions,” Pasa said. Moldovagaz took control of the Moldovan section of the Inter-Balkan pipeline “simply for free, when the value of the asset was about half a billion dollars”.<\/p>\n

As is often the case, the future will depend on technical and legal issues. But in these details, experts see a relative geopolitical and political dimension, which could close the doors of the presidential palace once again or open them even further.<\/p>\n

Edited by: Kristie Pladson<\/em><\/p>\n<\/div>\n

<\/div>\n

Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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