the difficult exit from dependence on Russian gas in Austria and Moldova

After two years of war in Ukraine, several European countries are still dependent on Russian gas. If Moldova sees a solution to get out, Austria is entangled in a contract with Gazprom.

The European Union aims to do without Russian gas imports by 2027. However, Austria still imports 98% of its gas from Russia, and it is bound by contract with Gazprom until 2040. On the other hand, Moldova, a non-EU member country, should succeed in freeing itself from its dependence on the energy giant by connecting to the Romanian electricity network.

The embarrassing contract between Gazprom and Austria

Before the invasion of Ukraine, Austria imported 80% of its gas from Russia. Two years later, the country is still as dependent on Russian gas, since in January 2024, 97% of its imports came from Moscow. The absolute quantities that Austria imports have certainly decreased, thanks in particular to a drop in consumption in the country, but they still largely come from Russia.

This situation is due to a contract which links the Austrian energy company, OMV, one-third owned by the Austrian state, to the Russian giant Gazprom. It was extended in 2018 and now runs until 2040. This contract contains a clause that requires OMV to pay for deliveries, whether or not it accepts the gas.

If it is today denounced as a strategic error, no one knows if it will be possible to get out of it since the details of the contract are kept secret. This is deplored by Gerhard Mangott, professor at the University of Innsbruck and specialist in Russia. “The government says it is preparing to completely abandon Russian gas by 2027, but is unable to provide concrete answers on how the Austrian energy company OMV could exit this contract with Gazprom, without having to pay considerable sums.”

To completely do without Russian gas by 2027, Austria, through its Minister of the Environment, Leonore Gewessler, has just tasked an institute with examining, by the summer, the economic consequences of a termination of this contract. She wants “use all possibilities to get out of it”and also wishes to impose a diversification obligation for energy suppliers.

The aim is to force them to gradually reduce their imports of Russian gas. A law is currently being drafted, but for it to be adopted, a two-thirds majority is needed in Parliament. However, this is far from being certain, in particular because of the FPÖ, the far-right party, with its pro-Russian positions.

Moldova moves away from Russia, via Romania

For the moment, Moldova depends on Russian gas to produce its electricity, moreover via a factory located in the self-proclaimed independent region of Transnistria. But a new electricity line, construction of which begins on April 8, should allow Moldova to disengage from Russian gas deliveries, by connecting the country to the Romanian electricity network.

This is the first of three lines aimed at importing electricity from Romania. By the end of 2025, it will cover 50% of Moldova’s electricity demand. The other two lines should see the light of day in 2028. According to the authorities, this will no longer depend exclusively on the Cuciurgan plant, located in Transnistria, and which produces more than 80% of the country’s electricity.

Transnistria is a Moldovan region, self-proclaimed independent since 1991, and is not under the control of the government in Chisinau. Its separatist authorities maintain good relations with Russia, which has a military presence there. Moscow delivers gas free of charge to Transnistria, which then sells its electricity to the Moldovan government. “Previously, due to approximately 98% energy dependence on Gazprom or Kremlin-controlled energy companies, it was difficult to make policy decisions not aligned with those of Russia, explains the director of the Moldovan public institution, in charge of energy infrastructure projects. Given that Moldova has few energy resources, the diversification of energy imports is crucial to ensure real independence in its development.“

Moldova has been very affected by the gas crisis since the start of the war in Ukraine, and it has turned towards Romania and the other countries of the trans-Balkan network. Today, the authorities assure that, apart from Transnistria, the country no longer depends on Russian gas, even if they do not rule out turning to Gazprom in the future. The important thing is that now Moldova has a choice between different markets. Soon, it will even receive its first delivery of American liquefied natural gas. The question of energy prices, however, remains essential, since the population has seen the amount of their bills explode and for many, regardless of the origin of the gas, the important thing is to be able to afford it.