“Putin uses gas as a weapon to weaken us. But he won't succeed"

WORLD: Minister Parlicov, since the outbreak of war in neighboring Ukraine, the population of Moldova has been suffering from an energy crisis. Why have the price shocks still not been overcome?

Victor Parlicov: We sold Russian gas to become independent. That wasn't possible for a long time. Until 2021 we had no gas from other sources, no gas reserves, no possibility to buy gas from suppliers other than Russia's Gazprom. We were completely dependent on Russian gas. Now we live in a whole new reality. The western part of Moldova has bought almost no gas from Russia since December. We have built a pipeline to Romania that allows us to buy gas from European markets: the Trans-Balkan Pipeline. But the price of freedom is high, because the gas from Russia was extremely cheap.

WORLD: Gas prices have increased sevenfold – how can people in Moldova afford that?

Parlicov: In December we received help from the EU, which we can use to relieve the burden on citizens. We have around 285 million euros at our disposal until April. Thanks to the support of the international community – the EU and the USA – we managed to pay part of the energy bills to the poorest through a compensation system. Energy prices are now lower again than at the beginning of winter.

WORLD: You are still not independent of Russian gas – only Russian gas continues to flow into the breakaway region of Transnistria.

Parlicov: Dependence on Russia has drastically reduced, but it's not over yet. Gazprom continues to supply gas to Transnistria, which is not controlled by Moldova's constitutional bodies. Around 60 percent of Moldova's total gas imports still come from Russia.

WORLD: And these 60 percent flow into the relatively narrow strip of land of Transnistria?

Parlicov: Moldova's largest power station is located in Transnistria. There the gas is converted into electricity and sold to the rest of the republic. Transnistria makes a lot of money by selling electricity. That is why Russian gas still plays an indirect role on the electricity market. When the energy crisis came in winter, we decided to continue buying electricity from Transnistria so that the population would not have to do without cheap electricity. These price spikes have made us extremely vulnerable.

WORLD: In this way, Gazprom continues to influence the energy market?

Parlicov: Yes, the rest of Moldova imports gas from Europe. But the electricity from the power station in Transnistria covers about 70 percent of the electricity consumption in the whole country - the gas from Russia is important for this.

WORLD: Why is gas from Russia so much cheaper?

Parlicov: Gazprom supplies the gas to Transnistria virtually free of charge. Theoretically, Gazprom sells the gas to the region through its subsidiary Moldovagaz. But the government there pays the money itself to finance itself.

WORLD: And what does Russia get out of it?

Parlicov: Influence. Moldova has been part of Russia's influence since 1992 - since its inception, or actually since the war in Transnistria. The energy sector is crucial in maintaining the illusion of Transnistria's independence from the rest of the republic. For Russia, gas is a tool to maintain control over Moldova. This pattern does not only apply to us, all hotspots of the former USSR follow the same pattern - whether in Nagorno-Karabakh, Ossetia, Crimea or Transnistria.

WORLD: So Russia uses gas as a kind of weapon?

Parlicov: We are in the midst of a hybrid war – propaganda is spreading and protests are taking place in the country. The actions are initiated and co-controlled from Moscow. Russia is using its influence in the country to foment social unrest. Because of the high energy prices, the population is extremely vulnerable. Putin wants to make this his own and uses the gas as a weapon to further weaken the population. But he will not succeed in destabilizing our country.

WORLD: Why are you so sure?

Parlicov: In the short term, we can now respond with EU aid. And the price shocks we've been able to absorb so far have probably been bigger than what's ahead. In addition, the reaction mechanisms that we have been able to develop in the meantime will be able to absorb such shocks more quickly. We are no longer dependent on energy from Russia. Electricity from Transnistria is an option, but no longer a must. In theory, we can now also buy electricity from Europe.

WORLD: How do you want to free Transnistria from Russian influence without further weakening the country economically?

Parlicov: In the long run we have to make sure that we can absorb more renewable energies. By 2030, we aim to get 30 percent of our energy from renewable sources. We are already in the process of facilitating more investment in renewable energy to become less dependent on Transnistria power generation.

WORLD: How should this continue? The next winter is just around the corner.

Parlicov: If we conclude a longer-term gas contract at a lower price, energy prices will fall again. That is the short-term goal: to ease society's pain and buy time to gather the necessary resources to then become fully independent from Russia.