Hungarian-owned company to supply gas to Moldova’s pro-Russian separatist region

A Hungarian-owned company, MET Group, is set to supply natural gas to Transnistria, Moldova’s breakaway pro-Russian separatist region. This development comes after the region rejected further financial aid from the European Union (EU), according to reports by Bloomberg.

Background on the energy crisis

As Telex writes, according to Bloomberg, Transnistria, which has relied on nearly free Russian gas for over two decades, faced a severe energy crisis after Russia halted gas supplies via Ukraine at the end of 2022. This disruption led to widespread power outages and a lack of heating for the region’s population of over 350,000 people. In response, the EU provided EUR 20 million in emergency funding to cover gas purchases between February 1 and February 10. However, the separatist authorities declined an additional EUR 60 million in EU support due to conditions requiring gradual increases in consumer tariffs.

Moldovan Prime Minister Dorin Recean criticised Transnistria’s decision, stating that it perpetuates uncertainty for residents regarding their energy supply. Nevertheless, he emphasised that Moldova would not block gas deliveries to the region, ensuring that people on the left bank of the Dniester River do not suffer from freezing conditions.

Gas supply agreement

Under the agreement, MET Group will deliver gas to Moldova’s border. From there, Moldovagaz will transfer it to Tiraspoltransgaz, Transnistria’s gas distributor. The Swiss-based MET Group, with majority Hungarian ownership, confirmed its readiness to supply gas across Europe, including Moldova, provided logistical conditions are met. The Dubai-based JNX General Trading LLC will handle payments for the gas, while Tiraspoltransgaz has committed to prepaying transit fees through Moldova.

The arrangement is still provisional. MET Group has stated it will finalise the deal only if it ensures compliance with international sanctions and avoids obstacles from Ukraine. While alternative routes through Romania and Moldova exist, they have limited capacity, making transit through Ukraine the most practical option.

Humanitarian and political dimensions

MET Group described the situation as a humanitarian crisis requiring immediate assistance from both itself and the broader European community. The company emphasised that it does not influence Moldova’s decisions regarding funding sources for these supplies but supports efforts to explore alternative options.

Meanwhile, Vadim Krasnoselsky, Transnistria’s leader, expressed gratitude to Russia for enabling these gas deliveries through financial loans and support. He acknowledged that Russian assistance was critical in facilitating MET Group’s involvement in supplying gas to the region.

Challenges ahead

Despite progress on this agreement, several details remain unresolved. Neither MET Group nor Moldovagaz disclosed specifics about gas pricing, quantities, or delivery timelines. Additionally, JNX General Trading and Russia’s Ministry of Energy have yet to comment on their roles in the arrangement, Világgazdaság writes.

Moldova continues to seek long-term solutions for its energy needs amid ongoing geopolitical tensions. Prime Minister Recean indicated that Moldova would allow this temporary arrangement while urging Transnistrian authorities to demonstrate goodwill by addressing political issues such as releasing detainees and permitting Moldovan national television broadcasts in the region.

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