21 Feb 2025 15:54

Industrial production in Transdniestria halves in Jan due to energy crisis - republic head

CHISINAU. Feb 21 (Interfax) - Industrial production in Transdniestria fell by more than half in January, with key sectors experiencing declines of 66%-75% due to the energy crisis, the leader of the unrecognized Transdniestrian Moldavian Republic (Transdniestria) Vadim Krasnoselsky said.

"Now, regarding the blow dealt to Transdniestria's economy by the energy crisis. Production at the beginning of 2025 [in January] fell 56% compared to the same period in 2024," Krasnoselsky wrote on his Telegram channel.

"In some areas, the situation is simply catastrophic," he said. In particular, "engineering and metal processing were down 65%, light industry - a decline of 73.5%, ferrous metallurgy - figures down 87%, the chemical industry - down 91%," he said.

Since early January, around 40 industrial enterprises in Transdniestria had to suspend operations, he said. This includes some of the region's largest companies - the Moldovan Metallurgical Plant, the Rybnitsa Cement Plant, and the Tirotex enterprise.

"Foreign trade turnover (excluding energy resources) in January of this year was 37.6% lower than in 2024. Imports fell 24%, while exports dropped 60%. Declines in exports were observed across almost all sectors - chemical products (91.3%), textiles (83%), metals (82.5%), clothing (48.8%), food products (40.1%) and footwear (34.15%)," Krasnoselsky said.

Due to the shutdown of most enterprises in the region, budget revenues are expected to decrease by approximately 40% in February, he said.

The total amount of unforeseen expenses for energy supply companies exceeded 13 million rubles, he said. An additional 11 million rubles were allocated from the reserve fund for purchasing energy equipment.

Gas supplies to Transdniestria were resumed on February 1 and continued until February 10, financed by EU funds amounting to 20 million euros, following the suspension of Russian gas supplies to the region on January 1. The suspension occurred after Ukraine refused to extend the transit agreement and amid a dispute over the historical debt of Moldovagaz to Gazprom amounting to $709 million, which Moldovan authorities do not recognize. From February 11 to 13, natural gas for Tiraspoltransgaz LLC was supplied by JSC Moldovagaz.

Starting February 14, gas to Transdniestria will be supplied by the Hungarian company MET Gas and Energy Marketing AG for a period of 16 days under a short-term agreement. The gas is provided using Russian credit and with the organizational support of the Russian Energy Ministry.