Moldova faces a rough winter in a devastating energy crisis

Moldova faces a rough winter in a devastating energy crisis Politics

11/13/2022 06:00 (act 11/13/2022 06:00)

Aid packages are being distributed at a social center in Tudora

Aid packs are distributed at a social center in Tudora ©APA (Angelika Kreiner)

Moldova is currently in the worst energy crisis since independence in 1991. Europe’s poorest country depends on EU support to get through the winter. Russia reduced the supply of gas, Transnistria completely stopped the supply of electricity. Energy costs have exploded, inflation has risen to over 30%, and the country is under enormous pressure. Help is also coming from Austria in this difficult situation.

The largest non-governmental organization in the former Soviet republic, the Austrian humanitarian organization Concordia, offers 56 social services in 46 locations. “Winter support is needed, which is why we’ve put together emergency winter aid,” said CEO Ulla Konrad. She is the daughter of former attorney general Raiffeisen and former refugee coordinator Christian Konrad. Concordia has been operating in Moldova since 2004. “One must not forget the Moldovans”, appealed Konrad during a press trip to Ukraine’s small neighboring country in an interview with the APA.

“European solidarity with Moldova is unshakable,” European Commission President Ursula von der Leyen said on Thursday during a visit to the capital Chisinau. In response to the energy crisis triggered by the Russian invasion of Ukraine, the EU provides Moldova with €250 million in financial assistance. As part of the “Energy Support Package”, Moldova will receive €100 million in grants and €100 million in loans to “cover its gas needs” from January. According to von der Leyen, another 50 million euros will be made available as “budget support”.

Moldova’s pro-European president Maia Sandu had warned her country of 2.6 million people could run out of gas and electricity as winter sets in. Before the war, Moldova was completely dependent on Russian natural gas, now it is still around 80%. The imposing Russian gas company Gazprom has already significantly reduced deliveries to Moldova. On November 1, pro-Russian authorities in the breakaway region of Transnistria cut off electricity from the only major power plant, Ciugurdan, to Moldova. The plant, located in Transnistria, has so far ensured about 70% of the capital’s electricity consumption, Chisinau. So far, Moldova has gotten a third of its electricity from Ukraine. However, due to Russian attacks on local energy infrastructure, Kyiv stopped exporting. Moldova currently receives electricity from Romania.

Energy is being saved across the country. Offices, like rooms in government buildings, remain unheated, restaurants too cold, and lighting dim. A government session was recently held in the dark in Chisinau. “Saving is the motto. The population understood that it is necessary to save electricity and energy,” Cortina Ajder, from the Department of Labor and Social Welfare of the Ministry of Social Affairs, told a news conference in Chisinau, in front of Austrian journalists.

However, the question remains how the population will be able to cope with the rising costs. Electricity and gas prices have exploded, in some cases they are now five times what they were before the crisis. But wood prices are also extremely high because many people have switched to wood and charcoal heating. But wood also has to be imported; only about eleven percent of Moldova’s area is forest.

The government wants to help the needy population. “We hope to overcome this year of crisis,” said Vasile Cusca, Secretary of State for the Ministry of Health and Welfare, at a press conference in the unheated conference room of the Ministry of Social Affairs. The government has launched an online platform where people who are particularly affected by rising prices can register to receive subsidies. This is possible until November 25th, 600,000 people have already signed up, twice as many are expected. Those affected are classified into four categories and should then receive support. “We are very grateful for the EU’s help,” said Cusca. The country is also trying to find alternatives to Russian gas.

Savings are also made at all facilities of the NGO Concórdia. Timber was also purchased and the heaters switched to it, said Tatiana Balta, Concordia’s director in Moldova. While it used to be over 20 degrees in social centers and NGO facilities, it is currently heated to 18, maximum 19 degrees. Generators and fuel were also purchased for the worst case. “We are prepared,” said Balta.

“Moldova needs our attention,” said Konrad, CEO of Concordia. “I fear there are bottlenecks. There are few resources in the country,” he warned. From November to March, more than 13,000 people receive the NGO’s winter emergency aid packages, which contain food and hygiene items, plus €250 per family per month to pay for skyrocketing energy costs. You can help a family during the winter for 1,650 euros, Konrad said.

The Concordia association, founded in 1991 by the Austrian Jesuit Georg Sporschill, develops various aid projects in Romania, Bulgaria, Kosovo and Moldova. With Father Markus Inama, a Jesuit is still part of the management team. Concordia is funded primarily by grants.

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