Since January 1, the pipeline that crosses Ukraine and supplies Eastern European countries with Russian gas has been lying idle. The transit contract with Gazprom expired at the end of December, and Ukrainian President Zelensky chose not to renew it to avoid further fueling Putin's war chest. Hungary and Slovakia have expressed their discontent, but perhaps the hardest hit is Moldova, a small country wedged between Ukraine and Romania. Once known as Russia's fruit basket, Moldova now looks to the EU to absorb its vast harvest of apples, plums, grapes, and cherries.
Robert Fico's recent visit to Putin, just before Christmas, did not go unnoticed in the EU. The Slovak Prime Minister traveled to Moscow a week before gas deliveries via the "Brotherhood" pipeline came to an end. In 2024, Slovakia—along with Hungary and Austria—was still a keen buyer of Russian gas through the Ukrainian pipeline. Due to Zelensky's move, alternative options will have to be explored, including the TurkStream pipeline, which runs under the Black Sea, makes landfall near Istanbul, and then reaches Central Europe via Bulgaria.
Moldova, a country aspiring to EU membership, theoretically has a similar option—via a branch line on Romanian territory. However, the Russian state-owned gas company Gazprom has shut that door itself, citing a payment backlog that Moldova disputes. According to Prime Minister Dorin Recean, Russia is trying to leave the Moldovan population without gas and electricity to destabilize the small country. He specifically points to Transnistria, a pro-Russian separatist region of Moldova, where residents are experiencing hours-long power outages just as winter peaks. According to the president of this unrecognized republic, Vadim Krasnoselsky, coal reserves for electricity generation will last only until mid-February. After that, everything will come to a halt.
According to Moldpres, the Moldovan government's news agency, energy supply for the country's citizens and businesses is secured—except for Transnistria, which, according to the government, has so far refused an outstretched hand. Even Zelensky has offered to supply coal.
Moldova's energy supply is roughly 50% self-sufficient, with the other half coming from imports from Romania. At the beginning of January, the European Commission announced its support to ensure the country does not suffer from energy shortages. In the coming months, the EU will assist in the construction of new power plants with a total capacity of 125 MW.
One of the consequences of halting gas transit via Ukraine is higher gas prices, even in the EU. Over the past months, prices have risen from €30 per megawatt-hour to €50—still far from the 2022 peak of €300. However, the price increase is also partly due to the Dunkelflaute in Western Europe at the end of 2024 (a period of dark weather with no wind, meaning little solar and wind energy), combined with a cold winter, which has led to greater reliance on gas reserves compared to last year.
What impact do rising gas and electricity prices have on the fresh produce sector in Ukraine's small neighbor? We asked Iurie Fala, CEO of Moldova Fruct, the Moldovan fruit industry association. "The almost 75% increase in electricity tariffs from the beginning of January 2025 of course is a challenge for fruit growers and exporters, whose cold rooms are full of apples from the 2024 harvest. For the most part, they will strive to remedy this situation by adjusting the final marketing prices on the local market and for export destinations."
The Moldova Fruct Association notes that this situation will diminish the potential revenues expected from the increase in apple prices at the regional level, but not to such an extent that it will jeopardize the profitability of the business. "Especially in this season's positive situation on the European apple market. Apple exporters are very active in diversifying destinations. This business has become more resilient to shocks caused by Russian embargoes. Besides, more and more producers are investing in their own renewable electricity supplies, thanks to the support the Moldovan government is providing from its own sources", Fala says.
Moldovan exporters have started to open their cold stores actively after the winter holidays and can offer consumers sufficient quantities of Golden, Gala, Red Chief, and other varieties. "The supply is no lower than in the previous season", Fala concludes.
About 20 fruit producers and exporters from Moldova will exhibit at Fruit Logistica in Berlin. You can find the Moldova Fruct Country stand in hall 7.2.C, stand B-30.
For more information:
Iurie Fala (CEO)
Moldova Fruct
MD 2012 Chisinau (Moldova)
Tel: +373 222 23 005
Mob: +373 693 66 424
ifala@moldovafruct.md
www.moldovafruct.md