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Gas crisis in Moldova: Prime Minister warns of social unrest

2021-10-29T12:50:24.259Z


The gas price for the poor country Moldova on the fringes of the EU is expected to triple: The EU Commission criticizes a Russian attempt at blackmail. Prime Minister Natalia Gavrilița says: The consequences for your country could be serious.


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Prime Minister Gavrilița in Brussels

Photo: Bernd von Jutrczenka / picture alliance / dpa

For a long time it was taboo for Russia to openly use gas as a means of political pressure, but that has changed - the examples of this are just increasing: The EU Commission criticizes Moscow for using its market power to politically blackmail Moldova. The state that lies between Romania and Ukraine and in which pro-Russian and pro-European forces have been wrestling with each other for years. Moscow is said to have instructed Moldova to change its trade agreement with the EU, according to a report in the Financial Times: Otherwise the price of gas should triple.

If a surprising agreement is not reached, the situation in Moldova threatens to escalate, Moldova's pro-European Prime Minister Natalia Gavrilița told SPIEGEL.

"The rise in energy prices could create economic conditions that lead to social unrest," says Gavrilița.

"There would definitely be a recession and, of course, political consequences."

more on the subject

Gas dispute with Russia: Moldova's government has its back to the wall

There is currently a gas shortage across Europe, which could worsen in winter.

Russia recently made the delivery of more gas to Germany dependent on the federal government approving the opening of the controversial Nord Stream 2 gas pipeline.

This contradicted the long-standing claims of German Nord Stream 2 proponents that the pipeline is a purely economic project and has no geostrategic component - because it can bypass the gas transit through Ukraine and Poland.

In June, however, Russian President Vladimir Putin demanded “goodwill” from Ukraine, even if gas is to be transported through Ukraine in the future, despite Nord Stream 2.

Gazprom wants to triple the price of gas

Moldova is now the latest dispute: the Russian state gas company Gazprom has partially turned the tap on the country, one of the poorest in Europe.

As a result, there have been columns of cars hundreds of meters long in front of gas stations for days - because many cars run on gas for reasons of cost.

But that has just become priceless.

After the expiry of a 30-year contract, Gazprom does not simply want to extend the existing conditions, but wants to triple the price, according to Prime Minister Natalia Gavrilița.

That's how she tells SPIEGEL.

According to media reports, Moscow is said to have asked Moldova, among other things, to amend its trade agreement with the EU if it wanted to continue to be supplied by Gazprom at low prices.

Moldova's Prime Minister Natalia Gavrilița "did not want to comment" on this in an interview with SPIEGEL.

But she left no doubt that the consequences of the price increases could be devastating for her country.

In October, Moldova paid $ 250 for every 1,000 cubic meters of gas, and Gazprom is now charging $ 790, more than three times as much.

"This increase is priceless not only for the poor, but also for the middle class," says Gavrilița.

In addition, Moldova received 35 percent less gas this month than expected, which is why the pressure in the pipelines temporarily fell below a critical level.

The EU Commission is now hurrying to jump Moldova aside - at least symbolically. Ursula von der Leyen announced aid amounting to 60 million euros to at least cushion the worst consequences of the gas emergency with Russia. Moldova has the "full support" of the EU, said the Commission President on Wednesday evening after a meeting with Moldova's Prime Minister Natalia Gavrilița in Brussels.

She left the task of firing a verbal broadside against Moscow to the EU foreign policy chief Josep Borrell.

In a joint appearance with Gavrilița on Thursday, the Spaniard accused Gazprom of exerting "political pressure" on Moldova.

An agreement was reached with Moldova to oppose anyone who "wanted to use energy as a geopolitical weapon".

The rise in gas prices on global markets was "not a result of the use of gas supplies as a weapon, but it is in Moldova," stressed Borrell.

It was the barely veiled accusation that the Russian government wanted to politically destabilize a neighboring country through the gas price.

The negotiations with Gazprom are stuck

The government of Moldova has now declared a state of emergency in order to free up the funds for the purchase of gas on the free market.

Among other things, this led to a supply contract with the Polish company PGNiG for one million cubic meters of gas.

Although that is only a tiny amount, it is still »a historic moment«, according to Gavrilița.

For the first time ever, her land bought from a company other than Gazprom.

However, this threatens to exacerbate the conflict with Moscow.

The negotiations with Gazprom are stuck: Even on the second day in a row, no agreement was reached in the talks in St. Petersburg, the group announced on Thursday evening.

Russia is already threatening the ex-Soviet republic, which is one of the poorest countries in Europe, to turn off the gas at the beginning of December if the existing contract is not extended on new terms. Kremlin spokesman Dmitri Peskov recently claimed that this was not for political reasons, but for purely commercial reasons. There is a great demand for Russian gas, and Moldova owes around 610 million euros to Russia.

The market price of natural gas is already at $ 110 per 1,000 cubic meters.

"That is four times as much as before," said Prime Minister Gavrilița.

Should Moldova be forced to meet its entire needs of around eight million cubic meters of gas at this price, "then the EU's 60 million euros would be just a drop in the ocean".

The money would be used up after a few weeks; at the price of 790 US dollars quoted by Gazprom, it would not be enough for twelve days.

In the EU, however, many are likely to wonder whether Moscow's dealings with Moldova are a signal, according to the motto: Look, this is what happens to those who depend on our gas and disregard our political wishes.

Could other European countries fall victim to the Russian gas price weapon that Borrell warned about?

"I hope not," says Gavrilița.

Source: spiegel

All news articles on 2021-10-29

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