Russia’s Gazprom PJSC will halt natural gas supplies to Moldova starting on Jan. 1 due to an alleged debt impasse amid a state of emergency in the Eastern European nation’s energy sector.

Russia’s state-owned energy giant Gazprom says it will halt gas supplies to Moldova starting on Jan. 1, citing alleged unpaid debt by the east European country.

Gazprom has ceased gas exports to Europe via Ukraine after its transit deal expired. This marks the end of a historically contentious relationship since Crimea's annexation in 2014. The EU has been seeking energy alternatives amid the ongoing Ukraine conflict.

Gazprom said Moldovagaz “regularly fails to fulfill its payment obligations under the existing contract, which is a significant breach of its terms.”View on euronews

Moldova's Transnistria region has been thrust into an energy crisis following the termination of a gas transit agreement between Russia and Ukraine.

Russian-owned gas giant Gazprom announced in December it would halt gas supplies to Moldova over a dispute over an alleged $709 million debt for past supplies.

Russia's cessation of gas supplies to Europe through Ukraine has sparked a significant energy crisis in the separatist region of Transnistria. The region has halted heating and hot water services for residents,