Regional

Transnistrian region hikes energy tariffs amid crisis

Experts suggest the increase in Transnistrian energy tariffs aims to address a budget deficit of around 200 million euros. This deficit likely arose after the cessation of electricity exports from the Cuciurgan Power Plant to the right bank of the Dniester.

Reuters / Oameni lângă un pom de Crăciun într-o piață din Tiraspol, 3 ianuarie 2025
Sursa: Reuters / Oameni lângă un pom de Crăciun într-o piață din Tiraspol, 3 ianuarie 2025

The Tiraspol regime justifies the price hikes by claiming they are adjusting to economic realities, but public policy and energy security specialists believe the measure aims to compensate for lost revenue.

"Tiraspol claims it's paying for gas, but how? If they were actually paying, the money would go to Tiraspoltransgaz and be seized to cover its massive debts to Moldovagaz. Instead, the money is collected by an unrecognized firm and redirected. Citizens are paying twice – not for gas, but to plug the regime's financial holes," said public policy expert Andrei Curăraru.

Energy expert Eugen Muravschi also believes the energy tariff increase is meant to cover the region's budget deficit.

"This increase likely stems from the halt in electricity exports to the right bank, creating a significant budget shortfall. The gas consumed isn't paid for by the regime, but by a Dubai-based company via a purported loan from the Russian Federation. Even if the increase seems small compared to real market prices, the goal is to cover the shortfall. The regime's refusal of European aid may be linked to human rights conditions, which the authoritarian regime in Tiraspol is unwilling to meet," explained Eugen Muravschi.

The Transnistrian region has faced a substantial budget deficit for years, with spending nearly double its revenue. This gap has worsened amid the ongoing energy crisis. Despite receiving gas from a European grant in early February, Tiraspol refused further non-repayable financial aid of 60 million euros, which came with conditions.

Two weeks later, the self-proclaimed Transnistrian authorities announced increased tariffs for natural gas, electricity, heating, and water. Thus, from March 1st, some residents' bills will more than double.

Since February 14, Transnistria has received gas via the European trader MET, financed by a Dubai-based company. The Chisinau government previously stated it permitted these deliveries to prevent a humanitarian crisis.

These deliveries were authorized by the Commission for Exceptional Situations, allowing Moldovagaz to contract the sale and purchase of natural gas to Tiraspoltransgaz, with advance payments, including transport costs.

The government stressed this isn't an agreement with Russia or other entities, but permission from the Executive for people in Transnistria to receive gas and avoid freezing.

While Tiraspol claims the gas supply is based on a Moscow-provided credit, experts warn this scheme allows Russia to maintain its influence in the region.

Translation by Iurie Tataru

Bogdan Nigai

Bogdan Nigai

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