The end of Russian natural-gas transit across Ukraine is a blow to Moscow, but it could provide the Kremlin with sharpened tool for economic and political influence over a key target country: Moldova.

The blow to Transdniestria was immediate. Households' central heating and hot water were cut off, and nearly all industrial enterprise was shut down.

Russian energy giant Gazprom said on Saturday it would suspend gas exports to Moldova from 0500 GMT on Jan. 1 due to unpaid debt by Moldova, which is bracing for severe power cuts.

By Iulian Ernst in Bucharest Majority state-owned Russian company Gazprom discontinued its gas supplies to Moldova at 7:00am local time on January 1, saying that Moldovagaz, in which the Russian company holds a majority stake,

Moldovans are bracing for a difficult winter ahead as a looming energy shortage could leave them without enough energy.

Russia's energy giant Gazprom claimed the decision was related to Moldova's outstanding debt, not problems with transit via Ukraine.

Experts have said Moscow may be setting the stage for a "false flag operation" in the breakaway Transnistria region of Moldova.

Russian Gazprom's decision to halt gas supplies to Moldova resulted in a heating outage in the Russian-controlled region of Transnistria, prompting Chisinau to seek alternative sources of electricity.

STORY: Moldova's breakaway region of Transdniestria has been hit hard by the severing of one of Russia's last gas export routes to Europe. Russia had long provided free gas and had been pumping some 70 billion cubic feet of the fuel to the region per year.

Moldovan Prime Minister Dorin Recean ordered his government on Monday to start preparing for the possible nationalisation of gas company Moldovagaz, which is 50%-owned by Russia's Gazprom .

Moldova may face a security crisis if Russia cuts off gas supplies to Transnistria. This is a threat to the country's stability and territorial integrity, stated Moldovan Prime Minister Dorin Recean,