Moldova predicts inflation growth by 10% due to energy crisis

An increase in the electricity tariff in Moldova due to the energy crisis will lead to an increase in inflation by 10%, as well as to higher prices for all goods. This was reported on January 4 by Alexei Lungu, leader of the opposition party "Chance".

"The doubling of tariffs pulls inflation growth. According to some estimates, up to 10% or even more. And it will hit the prices of the entire consumer basket," Lungu noted in his Telegram channel.

According to him, pensioners and budgetary employees will face a bigger problem because half of their income will go to pay for utilities.

Lungu added that compensations are necessary, but not to the extent offered by the authorities.

Gas for that: Moldavia expects protests after transit through Ukraine is cut off

With whom Chisinau will have to negotiate now

On January 1, centralized heating was cut off in Transnistria after Gazprom stopped Russian gas supplies via Ukraine. Gas stopped flowing also to Moldova because of debts not paid by the country. In turn, Moldovan Prime Minister Dorin Recean did not recognize the debt and threatened to sue.

The day before, energy expert Sergei Ungureanu told Izvestia that Moldova has a difficult situation in the energy sector, and the purchase of electricity from Europe will hit the country's economy. He noted that Moldova has not agreed to continue gas transit through Ukraine, which means that Transnistria will not receive it and will not be able to produce enough cheap electricity.

"Gazprom and Moldovagaz signed a five-year contract for gas supplies in the fall of 2021. It stipulated Chisinau's payment of the debt for supplies in the past few years. The entire volume was estimated at $709 million, of which Chisinau officially recognizes only $8.6 million.