The separatist region of Transdniestria, located along Moldova's border with Ukraine, has reached an agreement to receive natural gas supplies backed by a Russian loan.

This development comes after a halt in Russian gas shipments on 1 January 2025, which led to widespread power outages in the region.

The delivery of gas to Transdniestria, facilitated by Hungary's MET Gas and Energy Marketing, is underpinned by Russian financial and operational support, according to Transdniestrian leader Vadim Krasnoselsky.

Moldovan Prime Minister Dorin Recean confirmed that Moldova would not obstruct the gas flows to the breakaway territory.

The origin of the gas involved in the new agreement has not been disclosed by either Moldovan or Transdniestrian authorities.

Recean indicated that daily supplies of three million cubic metres could commence from 13 February 2025, with the current agreement spanning only 16 days.

Recean also highlighted that Transdniestria had declined a EU offer of €60m ($61.9m) to fund gas purchases, as it would necessitate an incremental increase in consumer gas prices.

He added: "The inhabitants of the Transdniestria region will continue to live in a state of unpredictability and worry about gas supply.

"It is a solution that doesn't solve the problem long term."

Previously, Moldova had stepped in to supply the region with gas for the first ten days of this month, utilising a portion of a €30m grant from the EU.

The cessation of Russian gas via Ukraine earlier in January was due to Kyiv's refusal to renew a transit agreement, prompting Moldova to suggest alternative routes.

However, Russia's Gazprom ceased exports to Transdniestria, citing an unresolved debt issue with Moldova.

Transdniestria, which declared independence from Moldova after a brief conflict in the 1990s, has historically accessed inexpensive Russian gas, which has been used for heating and electricity production, with the latter being sold to the rest of Moldova.