Moldovan Prime Minister Dorin Recean today instructed his government to begin preparations for possible nationalization of the Moldovagaz gas company, 50% of which is owned by Russian oil company Gazprom.

Gazprom said it plans to halt natural gas exports to Moldova on January 1, from 05.00 GMT (07.00 GMT), due to non-payment.

Speaking during a government meeting, Rejean told the Justice minister to prepare legislative changes that would allow the nationalization.

“We must act in the strategic sectors. Among other things, these facilities were also taken away from us at one time… And we should return them to state ownership,” said Recean, referring to the ownership structure when the company was established in 2013.

In addition to Gazprom‘s stake, the pro-Russian enclave of Transnistria owns about 13%, while the Moldovan government holds 35.6%.

Russia supplies Moldova with about 2 billion cubic meters of natural gas annually. This amount is piped through neighboring Ukraine, whose contract with Russia for gas transit expires on December 31. Kyiv has refused to extend the gas transit deal as its war against Russia approaches three years.

Moldovagaz transports Russian gas to Transnistria, which is used to produce cheap energy that is sold to Moldovan government-controlled regions.

Moldova disputes that it is delaying previous gas shipments and accuses Russia of destabilizing the country, which Moscow denies.

Moldova and Transnistria have imposed an economic state of emergency, including measures to reduce electricity consumption during peak hours.

Analysts said parliamentary approval would be required before any nationalisation could proceed.