More bad news for Russia: The timing couldn't be worse

Written by Henrik Rothen

Oct.02 - 2023 1:16 PM CET

The timing couldn't be worse.

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In a move that has sent shockwaves through the energy sector, Moldova has announced that it will no longer purchase natural gas from Russia's Gazprom. This decision comes just days after Gazprom reported a record low in its gas production, adding to the mounting challenges facing Russia's energy giant.

According to Nasdaq, Gazprom, Russia's state-owned gas company, recently revealed that it had produced a record low amount of gas. This news was already a significant concern for the Russian economy, which heavily relies on its energy exports. Moldova's latest decision to sever its gas ties with Gazprom exacerbates the situation, putting additional pressure on an already struggling company.

Moldova's Energy Minister, who confirmed the decision in an interview with RIA, stated that the country would seek alternative sources for its gas needs. While the minister did not specify which sources Moldova would turn to, the move is seen as a significant step towards reducing the country's dependency on Russian energy supplies.

The timing couldn't be worse for Russia

The timing of Moldova's announcement couldn't be worse for Russia, coming hot on the heels of Gazprom's own troubling news. The double whammy of setbacks has led to speculation about the future stability of Russia's energy sector, which is a cornerstone of its economy.

Moldova's decision is not just a standalone event; it's part of a larger trend of countries looking to diversify their energy sources and reduce dependency on Russian gas. This trend poses a long-term threat to Russia's standing in the global energy market, and the recent setbacks for Gazprom could be indicative of more significant challenges ahead.

As Moldova begins its search for alternative gas suppliers, all eyes will be on Russia to see how it responds to this latest setback.

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