Moldova Gas Prices Soar as EU Sanctions Cut Off Supply Options

Moldova is facing rising natural gas tariffs due to the country's dwindling supply options. The nation's energy import strategy has come under scrutiny, with some advocating for a return to Russian gas imports. However, financial analyst Vlad Grati dismissed claims that Moldova still buys Russian gas through intermediaries.

The Yamal-Europe pipeline remains inactive after Gazprom unilaterally stopped pumping through Poland in 2022. Deliveries through Nord Stream had ceased even before the explosions, and transit through Ukraine was halted last year. Currently, only TurkStream and Blue Stream remain operational, but most gas flowing through TurkStream is consumed within Turkey.

Expert Sergiu Tofilat emphasized that the European Union is systematically phasing out Russian fossil fuels, which will further narrow Moldova's procurement options in the coming years. EU sanctions will ban new Russian liquefied natural gas (LNG) contracts starting next January, with a complete ban on pipeline gas imports taking effect by September 2027.

To mitigate price volatility, experts recommend altering Moldova's procurement model. They suggest buying fixed volumes weekly throughout the year to build reserves gradually between April and October. Adopting a structured monthly purchasing schedule would prevent market shocks experienced in 2024, according to Tofilat.

Prime Minister Vasile Tofan previously stated that international procurement prices have outpaced the baseline used in current consumer tariffs, with raw gas accounting for roughly 60% of the final end-user cost. The National Energy Regulatory Agency (ANRE) has proposed a retail tariff of 20.3 MDL per cubic meter, while state supplier Energocom requested 20.93 MDL per cubic meter.