By Ahmed Adel, Cairo-based geopolitics and political economy researcher
After Ukraine decided to reduce the export of electricity, Moldova found cheap energy sold by Romanian state-owned hydropower producer Hidroelectrica. In fact, Hidroelectrica is selling its energy to Moldova at a massively reduced price. This is in the hope of pulling Moldova further away from Moscow and towards the EU and NATO.
Hidroelectrica and Moldovan energy trader Energocom signed on October 13 a 100 MW supply contract. Speaking at the signing, Romanian Energy Minister Virgil-Daniel Popescu said: “Tonight, the supply of electricity for the Republic of Moldova begins. We were, we are and we will be with the citizens of the Republic of Moldova.”
The legislative framework was ensured by the adoption of an emergency ordinance, which states: “in exceptional security situations in the electricity supply to the Republic of Moldova caused by the effects of the war in Ukraine, electricity producers have the obligation to conclude bilateral contracts, within the limits of available quantities, primarily with electricity traders/suppliers’ designated by the Government of the Republic of Moldova.”
Popescu also disguised a subsidy as a genuine energy price by declaring on Gorj TV that “individuals in our country can benefit from a price of 280 lei ($55.60) net per Megawatt/hour compared to the 450 lei ($89.40) that citizens from Moldova will pay.”
However, Romanians paying that price do so because of the cap imposed by the state, which subsidises the difference between the supply price to household customers and the purchase price (which cannot exceed 1,300 lei ($258.20)/Mwh). Effectively, nothing prevents Moldovan authorities from introducing a similar aid scheme for small and medium-sized enterprises and household consumers so that they have energy as cheap as the Romanians.
The price of 450 lei/MWh, with which Moldova now buys the energy available from Romania, is only an increase of slightly more than 10% on the tariffs applied by Ukraine, which, in the conditions of the energy crisis in Europe, is a huge assistance.
“Electricity from Romania will have a lower price than the market prices and will provide the 30 per cent that we can no longer receive from Ukraine, starting from October 14. This is possible because we succeeded in synchronising our system with the European electricity system back in March,” said Moldovan Deputy Prime Minister Andrei Spinu at the time.
Russian bombings severely damaged Ukraine’s energy infrastructure in the aftermath of the terrorist attack on the Kerch Bridge in Crimea. The damage caused by Russian bombings led to a massive reduction in Ukraine’s energy exports to Moldova and European Union markets.
In the gas sector, because of the war in Ukraine, Russia’s Gazprom is only able to supply Moldovagaz – Moldova’s gas distribution company – with only 67 per cent of the agreed 80 million cubic metres that the country requires, including for its breakaway region of Transnistria.
As Moldova is still dependent on Russian gas, Romania is hoping to back the neoliberal pro-EU/NATO government in Chisinau against the mass protests and criticisms by supplying cheap energy. Romania produces 80 per cent of its gas consumption and has its gas storage facilities filled to almost 90 per cent for this winter, and for this reason it is confident it can supply Moldova.
Regarding electricity, the supply from Transnistria is cheaper since the breakaway region does not pay for Russian gas, but it is extremely limited. Therefore, due to the supply issues from Russia, Romania is attempting to leverage this situation by strengthening anti-Russia forces in Moldova through cheap energy.
Tens of thousands of people in Moldova, a significant number considering the country’s entire population is 2.6 million, have been protesting for weeks on end because of high energy prices and the economic crisis. Protests are continuing to this day despite police removing on October 10 more than 100 tents set up by protestors between the presidency building and parliament on the busiest road in Chisinau, Stephen the Great Boulevard.
With Moldovan President Maia Sandu pandering to the EU and NATO by imposing sanctions on Russia, naturally, just as happened across Europe, the Moldovan economy is now struggling with inflation, high energy prices and a cost-of-living crisis. Although Romania’s delivery of electricity will somewhat alleviate the energy crisis in Moldova, it will not solve it, nor will it contribute to easing the boomerang effects of anti-Russia sanctions.
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Unfortunately, the Russians were incapable of linking up with their troops and allies in that country and now they are basically hung out to dry.
Romania is ruled by stupid idiot traitors ….
I agree… but this is just temporary situation
Kerch Bridge in Crimea was hit By Bulgarian TNT s, to respond to this behavior Russian Secret Service should Bomb the power electricity plant in Sofia or should stop supplying nuclear fuel to Bulgaria for electricity generation
Not bulgarian, read further reports of the investigation. Explosives were transported from Odessa on ships with grain, than a truck has crossed few borders to hide trails and came to Caucasus on a ferry to euro-Georgia (in asian part of Caucasus), crossed borders with Armenia, changed documents of the cargo, moved to euro-Georgia again and then entered Russia to store explosives at storage in Armavir where documents were changed one more time, explosives are loaded to the last truck (the driver had no clue about real cargo) and delivered to the bridge through Krasnodar region.
So, for you, the world started with ussr… there was nothing before that … and then, just after the world was born, in your mind, the eastern Moldova, inhabited by Romanians, was given by God to the anti-God jew-bolshevik ussr! Right? you are so ignorant , but I assume you are an old russian dude indoctrinated with false russian/bolshevik propaganda, which I can understand, but I can’t agree with. Try reading other books other then “world’s history” books writen by imperialist russian /bolshevik propagandists.
Shitskin kebabs dreams, eh? Never ment to be realized :D They should go back to fucking goats and forget about it.
LOS RUMANOS SE QUIEREN QUEDAR EN LA OTAN JUNTO CON SUS ENEMIGOS HISTORICOS ?? ES MUY DIFICIL ENTENDER ESO !!
LOS NEOLIBERALES EN CUALQUIER PAIS SOLO BUSCAN LLENARSE LOS BOLSILLOS Y NADA MAS LES IMPORTA !!
Now they are selling natural gas to Moldavia at the price twice higher than inside Romania. Belorussia has same prices as regions of Russia. Moldavia can prefer to be a part of Russia again than part of Romania, because Russia is not only low prices for energy, but the main market for agriculture of Moldavia and their wines. They lost this market few years ago and became the poorest country in Europe at that moment. Russia is not interested a lot in Moldavia, but PMR (Transnistria) will reunite with Russia for sure. Romania and pro-romanian/pro-western forces inside Moldavia knows that and could try to attack PMR and open new fromt for Russia (like unnecessary front in WWI in 1917) or at least to speed up annexation of Moldavia without PMR. Gagauzia is another autonomous region which has no wish to unite with Romania, because gagauzians are ethnic turkic people with orthodox christian faith without sympathies to modern regime in Bucharest.
Disgraceful behaviour by fake Orthodox countries with heads up US bum cracks
Rather cleaner Russian natural gas than stinking lgbtq variants which stinks yet burns less,FIXED!
“Effectively, nothing prevents Moldovan authorities from introducing a similar aid scheme for small and medium-sized enterprises and household consumers so that they have energy as cheap as the Romanians.” Really? This is more bullshit window dressing isn’t it? Any “aid” scheme tries to disguise the fact that either someone is parasitizing on someone else – like these idiots want Moldovans to parasitize on Romanians or they steal money out of someone’s pocket and then tell them it’s for “subsidies” so they pay less for eg. electricity when in actual fact they’re still paying more.
Why hasn’t Ukraine invaded Transnistria, the isolated long narrow Russian backed enclave between Moldova and Ukraine? Is it because it is legally Moldova, so Ukraine does not want to annoy Moldova?
Don’t forget that Russia has still to fulfil the peace treaty which ended the WW2 by rendering moldavian stolen territories to Romania. Romanians are patient and are waiting the right time to claim them.
Moldova must go to the Elections. Moldovians have to answer! A)Romania B) Russia Which country you want to join ? (They will select Russia %99) WHY ? Because Russian electricity and gas prices are not expensive as Romania.. and alcohol not expensive too
Nobody will allow Moldavians to express any option. The USA are deep entranched there, too. And Romania is literally ruled from WEF via Oslo
Ukraine will invide Transnistria soon and by this way it will join to the European Unian at last
Meanwhile Romanian people are robbed with huge bills for electricity, no matter how much they use!
Romanian sheeple are too low to rebel, being used by USA and expendable.
Ukraine must invide Transnistria immediately and then it can force Russia to giving back 4 cities back to Ukrain again in exchange for the city of Transnistria
“Tighina” city doesn’t exist, that city is called Bender. Just for information. And it’s a Russian/separatist controlled city.
Just for your information, “Bender” is just a Russian name of the Romanian city of Tighina …Bender city does not exist … this name exists just in the minds of some russian separatists
Bender is Romanian name of the Romanians invaded city of Pro Russians, Moldova calls this city as a name “Bandera” like Ukranian Banderas