[Global Issue+] Moldova Emerging as a New Battleground Between Russia and the EU
Dramatic Gas Supply Contract Settlement... Agreement at Triple Last Year's Price
Russia Expands Concerns Over Additional Forced Annexation Attempts Following Eastern Ukraine
[Asia Economy Reporter Hyunwoo Lee] Moldova, a small landlocked country in the northern Balkans, is emerging as a new battleground between Russia and the European Union (EU) following Ukraine. Recently, with the establishment of a pro-Western government in Moldova, pressure from Russia has intensified. Russia is expected to continue pressuring the Moldovan government by using natural gas as a weapon.
The reason Russia is pressuring Moldova is reportedly because it is a geopolitical key point located between Ukraine and Romania. From Russia’s perspective, having already militarily controlled Crimea and eastern Ukraine, gaining control over Moldova would allow it to encircle Ukraine from both east and west simultaneously, raising concerns about a significant negative impact on Eastern European security.
Moldova-Russia Gas Supply Contract Extended... Settled at Triple the Previous Year's Price
According to Russia’s TASS news agency, Russian state-owned gas company Gazprom and Moldovan gas company Moldovagaz agreed on the 29th (local time) to extend their gas supply contract for five years. Under this contract extension, the price of natural gas exported from Russia to Moldova was set at $450 per cubic meter (㎥) (approximately 520,000 KRW), more than three times the previous year’s average price of $140.
Previously, Gazprom pressured the Moldovan government to pay off $700 million in overdue gas fees and to raise the gas supply price to $790 per ㎥, but amid growing external controversy, the gas price was reportedly lowered somewhat. The Russian government even reportedly proposed to the Moldovan government that if it reduced cooperation with the EU, the gas price would be lowered, which further fueled controversy.
The reason Russia has pressured Moldova with gas as a weapon is interpreted as Moldova moving closer to the West after pro-Western President Maia Sandu was elected in last November’s presidential election, simultaneously pursuing EU membership and NATO (North Atlantic Treaty Organization) membership. Since the forced annexation of Crimea, Russia is also reportedly seeking to annex the eastern region of Moldova, which was formerly Soviet territory.
Russia Targeting Moldova, a Strategic Point in Eastern Europe
According to the BBC, the Transnistria region on Moldova’s eastern border declared a law in 2016 to pursue integration with Russia, and Russian troops are currently partially stationed there. As Moldova, the poorest country in Europe, faces accelerating economic difficulties, the vast majority of residents are reportedly in favor of joining Russia.
If this area is actually annexed by Russia, Ukraine would be encircled by Russia from both east and west, which is feared to bring significant changes to the security landscape of Eastern Europe. This is also why the EU emphasizes support for Moldova and confronts Russia. If the eastern region of Moldova or even the entire country is forcibly annexed by Russia, it would share a border with Romania, an EU and NATO member, causing growing anxiety among EU member states.
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There are also concerns that if Europe’s energy crisis worsens further, Russia’s influence will expand beyond the current level, increasing political pressure not only on Moldova but also on neighboring Eastern European countries as a whole.
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