The key element of Chișinău’s diversification project is the construction of the Iasi-Ungheni pipeline, but it won't resolve problem before the end of the current decade.

OSW Commentary
Kamil Całus

On 11-12 September, the Moldovan Prime Minister Vlad Filat met Russia’s Prime Minister Dmitri Medvedev and President Vladimir Putin. The main topic of conversation was the supply of Russian gas to Moldova. For the first time, Russia publicly gave Moldova an ultimatum: the Russian energy minister Aleksandr Novak said that talks on the conditions of gas supply will only be possible after Moldova revokes the protocol adopting the principles of the EU’s Third Energy Package, which it has signed as a member of the European Energy Community.

Agata Wierzbowska-Miazga

On 3 July, the Moldovan gas monopoly Moldovagaz revealed that it has signed a provisional agreement with Gazprom to extend its gas supply contract until the end of 2012. The old contract expired on 31 December 2011. Negotiations on a new agreement were suspended in October last year after Moldova committed itself, as part of the Energy Community, to implement the Third Energy Package.

Witold Rodkiewicz

When Moldova and Ukraine joined the Energy Community in May 2010 and February 2011 respectively, they committed themselves to adopting and implementing a series of European Union directives relating to gas, electricity, renewable energy and environmental protection. Although the deadline for implementing most of these measures has passed (at the end of 2010 in the case of Moldova, and this January for Ukraine), it is Chisinau which has made some progress, mainly in the electricity sector, whereas Kyiv has failed to meet fully a single one of its obligations.

Wojciech Konończuk
Sławomir Matuszak
Judging from the experience of how the third energy package was adopted in EU member states, it will be extremely difficult for the Energy Community states to implement these regulations within such a short timeframe.
Tomasz Dąborowski
Marta Szpala
On 24 March, the deputy prime minister of Moldova Valeriu Lazar revealed that Moldova and Russia had reached an agreement to formally separate that part of the Moldovagaz company which is situated on the territory of the breakaway region of Transnistria. At the same time, the Transnistrian government would take over Moldovagaz’s debt to Gazprom, which stands at US$2.5 billion. This operation would legalise the existing de facto division of the gas infrastructure between Chisinau and Tiraspol, while at the same time releasing Chisinau from its legal liability for its debts for the gas consumed by Transnistria. Moldova’s accession to this agreement is a sign of Chisinau’s increasingly pragmatic policy towards the Transnistria issue.
On 3 September, the deputy head of Gazprom, Andrei Kruglov, stated that from next year the price of gas for Belarus, Moldova and Armenia will be raised to European levels. If this comes about, this would be the final stage in the Russian company’s departure from its policy of giving price discounts to some CIS states. It remains possible that the plan to raise gas prices for Belarus, in connection with the expected resistance from Minsk, may lead to another Russian/Belarusian gas crisis, even more so as relations between both countries have already been tense for several months.