Crisis In Moldova The Government Declaring A National Emergency Due To The War In Ukraine

The demand for energy across the globe has seen a significant increase over the past year in response to the Russian invasion of Ukraine. European countries are struggling to find a reliable source of energy leaving many without power and causing widespread blackouts that have plunged nations into economic turmoil, leaving many governments desperately scrambling for a quick solution.

Even countries like the United States are being impacted by this Global Crisis, this has caused the price paid by households for electricity, natural gas, motor fuels, and utility services, to increase by 29 percent from the previous year.

We can not overlook that the US is the wealthiest nation in the world, and if the United States is being impacted by this global crisis, small countries like Moldova are being devastated.

Last year, Moldova relied upon 80% of its electricity consumption from Transnistrian, while 20% of electricity was produced in Moldova itself. Since the Russian invasion of Ukraine, the overall share of electricity supplies from Transnistria has dropped to 56%.

In May of 2022, Gazprom threatened to stop gas supplies to Moldova. Gazprom claims that the Moldovan gas operator owes, approximately US$700,000. Then in August, Moldovagaz placed an order to suspend the gas deliveries of more than 2,000 non-household gas consumers over unpaid debts for previous supplies. With 2,002 non-household customers owing a total of 75.5 million Leu or $4 million USD.

This caused Moldvagaz to issue a statement, "In order to ensure the continuous operation of the country's gas system and to not allow an accumulation of the debt, Moldovagaz orders the disconnection of the gas installations of the debtor consumers.”

Moldovagaz had already decided in early August, to cut energy supplies to over 708 household users due to unpaid balances, their debts totaling 4.1 million Leu which is equivalent to $843,048.93 USD. One of the main factors in the increase in consumers' inability to pay unpaid debts, is that in the last six months gas prices for households have risen from 4.5 Moldovan lei to over 15 lei (nearly 250%) or 3.08 USD.

To make matters even worse in Moldova, the prices of petrol, diesel, and LPG have also risen, which have in turn affected the costs of food and other goods and services. In addition, another underlying factor adding to the shortages and increase in spending by both the citizens and the government of Moldova is the influx of Ukrainian refugees into the country that are fleeing the Russian invasion. As of July 2022 over 538,602 Ukrainian refugees have crossed the border into Moldova.

This has caused a major increase in energy, food consumption, and spending by many of Moldova’s citizens, who are now taking in the refugees, and offering them accommodations. The Moldovian government has implemented a Cash Assistance program that is providing additional aides to the refugees by supplying around 2,000 Lei or 411.24 USD per month to each refugee taken in by one of its citizens. To help with this effort the European Commission has allocated around, 1,698 Billion Leu or 349 Million USD for humanitarian aid.

But the average Moldovan Citizen is already struggling to make ends. An average monthly Salary in Moldova is 9561 MDL or 497 USD and the average cost of living is 8,317 MDL or 431 USD this is not including rent.

To add to the deteriorating economic situation in Moldova, due to the threat of a Russian invasion, Moldova’s parliament declared a state of Emergency on July 28th continuing until October 8th.

The Prime Minister Natalia Gavrilita stated that "The risks for Moldova due to the war in Ukraine remain high. The government needs additional powers."

I think we are so self-absorbed in our own lives and conflicts that we often overlook the people who are truly in need.

I live in the US and there is no doubt that we have our issues to worry about, just trying to make ends meet. But in comparison, we have no reason to complain. We can easily ignore situations like Moldova, but that is only feeding into the very reason why we are in this global crisis in the first place.

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