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Moldova Signs Loan Deal to Supply Gas to Breakaway Transnistria Region

Moldova: Moldova has signed a loan deal with its breakaway Transnistria region to supply 3 million cubic meters of gas. This agreement comes amid an energy crisis resulting from Ukraine's decision not to renew a deal on the transit of Russian gas to Europe earlier this month.

According to Anadolu Agency, the agreement was signed with Tiraspoltransgaz, the gas supplier for the breakaway region. Moldovagaz, the gas operator, stated that the loan deal would ensure the functionality of the gas system on the left bank of the Dniester. The gas supply to Transnistria is set to be completed by March 1, 2025.

In response to the energy crisis, the European Union proposed a £30 million emergency assistance package to support Moldova's efforts. Meanwhile, Gazprom, a Russian energy company, announced a reduction in gas supplies to Moldova starting January 1, citing Moldova's refusal to settle its gas supply debt.

The situation has been further complicated by the expiration of a five-year agreement between Moscow and Kyiv on the transit of Russian gas through Ukraine. The Ukrainian government refused to extend the deal as the conflict between the two nations continues. Transnistria, under the control of pro-Russian separatists since the early 1990s, had been receiving Russian gas via Ukraine.

In response to these developments, Moldovan authorities declared a 60-day state of emergency in the energy sector in mid-December.