Gazprom announced it will halt gas supplies to Moldova on January 1, citing unpaid debt, which Moldova disputes.

The cut will affect the Kuciurgan power plant in the separatist region of Transnistria, which supplies much of Moldova’s electricity.

Moldova has accused Russia of using energy as a political weapon and has implemented emergency measures to cope with potential power shortages.

The Moldovan government contests Gazprom’s claimed debt of $709 million, arguing it stands at just $8.6 million, according to audits, CNBC has reported.

Moldova is working to diversify its energy sources and prepare for any disruptions, including potential international arbitration.

Written by B.C. Begley