Gazprom will halt natural gas supplies to Moldova’s Transnistria region starting January 1, 2025, citing unpaid debts by Moldovagaz. This decision, announced on December 28th, will reduce gas supplies to zero cubic meters per day until further notice. While Moldova has secured alternative gas supplies for its own consumption, Chișinău rejects responsibility for Transnistria’s debt and the termination further complicates already strained energy relations between Russia and Moldova. This action comes as Ukraine refuses to renew the transit agreement for Russian gas to Europe, effective January 1st, 2025.
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Transnistria’s leader, Vadim Krasnoselsky, declared a 30-day economic state of emergency due to potential Russian gas supply disruptions stemming from the impending expiration of the Russia-Ukraine gas transit contract. The emergency measures include energy conservation and restrictions on exports and financial activities. This action follows Ukraine’s refusal to renew the contract, despite Russia’s stated willingness to continue deliveries, creating uncertainty about future gas transit routes. The potential cessation of transit through Ukraine poses significant financial risks to Russia, impacting Gazprom and significantly reducing already diminished gas flows.
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Gazprom will halt natural gas deliveries to Austria this weekend, ending a long-standing energy relationship. Austria’s largest energy supplier, OMV, anticipated this, having secured alternative supply routes from Germany, Italy, and the Netherlands. The country’s gas storage facilities are full, ensuring sufficient supply and dismissing fears of shortages. Chancellor Nehammer confirmed Austria’s secure energy position and reaffirmed unwavering support for Ukraine, despite Gazprom’s actions.
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Austria is set to be completely cut off from Russian gas starting this Saturday. This dramatic development stems from a recent arbitration case where the Austrian petrochemical company OMV successfully sued Gazprom for €230 million due to unreliable gas deliveries in 2022.
OMV cleverly decided to offset this substantial award against future gas deliveries, effectively issuing an ultimatum to Gazprom: pay up or face a complete halt to gas supplies. Unsurprisingly, Gazprom chose the latter, violating their contract with OMV in the process.
This unexpected move, however, ironically plays into OMV’s hands. The termination of their long-standing contract with Gazprom – a contract that was previously the cornerstone of Austria’s Russian gas imports – now allows Austria to completely exit the agreement without penalty.… Continue reading
As we delve into the current situation surrounding Gazprom and Russia, the harsh reality of the impact of sanctions and the war in Ukraine becomes evident. The recent news that Gazprom will need at least a decade to recover the gas sales volumes lost due to sanctions serves as a stark reminder of the long-lasting repercussions of their actions. It’s not surprising to hear this estimation, considering the immense challenges they are facing as a result of their aggressive behavior and disregard for international norms.
Looking ahead, many factors could further impede Gazprom’s recovery efforts, including unforeseen global economic downturns and advancements in renewable energy technologies that could diminish the demand for traditional fossil fuels.… Continue reading
John Q. Hosedrinker 
Matt Underwood