Moldova’s Russia-backed breakaway region strikes deal to end energy crisis

Moldova has reached a deal with its Russian-backed breakaway Transnistria region to get gas flowing again after Moscow cut off supplies last month, having left hundreds of thousands of people without heating or water.

In a statement Monday, Moldovan Prime Minister Dorin Recean said Transnistria had declined €60 million in European Union funds to help with fuel deliveries and instead brokered a deal with a Hungarian firm. Transnistrian authorities claimed it will be underpinned by “Russian credit.”

“Under Moscow’s pressure, [Transnistria’s de facto capital] Tiraspol refused €60 million in EU aid that could have ended energy blackmail,” Recean wrote online.

A senior Moldovan government official confirmed the details to POLITICO.

“Russia blocked the EU-proposed solution for the Transnistrian region” over fears of losing its hold over the unrecognized state,” added the official, who was granted anonymity to discuss the arrangement.

Moscow has historically provided free gas to the separatist authorities, allowing them to fund pensions and soldiers’ salaries through energy sales. However, a plan to secure alternatives with the support of the EU would have meant tariffs gradually increasing and integration with the continent’s energy markets.

“If the Transnistrian region moves toward market prices, it weakens Russia’s grip — eliminating the need for subsidized energy and eroding Moscow’s economic leverage in the region,” the official said. “By obstructing this transition, Russia is protecting its most powerful tools of influence.”

The humanitarian crisis began at the start of the year when Moscow ended gas flows to the area over a dispute with the Moldovan government. Documents obtained by POLITICO showed local leaders rejected offers of alternative supplies.

Moldovan officials have repeatedly warned the standoff was designed to destabilize the EU candidate country ahead of parliamentary elections this year. The Kremlin was also accused of trying to bribe voters against supporting European integration in a 2024 EU referendum.