Republic of Moldova

The Council [of the EU] today gave its final green light to setting up the Reform and Growth Facility for the Republic of Moldova, a new instrument to support EU-related reforms and economic growth in the country. The envelope of €1.9 billion provided by the Facility is the largest EU financial support package since Moldova’s independence and comes on top of the EU’s other substantial support to the country. 

The announcement was made by European Council President António Costa during a joint press conference with Moldovan President Maia Sandu, emphasizing that the funding aims to “ensure peace.” Costa explained that the funding will come through the European Peace Facility and noted that Moldova has already received 37 million euros ($38.85 million) under the initiative.

The pro-Russian separatist region of Moldova, Transnistria, rejected Monday a new European gas offer despite experiencing a severe energy crisis since Gazprom deliveries stopped. The region has elected instead for an alternative solution financed by Russia that will see gas transported from Hungary. 

Today, the European Commission and the Republic of Moldova have agreed on a 2-year Comprehensive Strategy for Energy Independence and Resilience of Moldova. It has a two-fold objective of decoupling Moldova from the insecurities of Russian supply of energy and fully integrating it in the EU energy market. Under this strategy, overall support for the Republic of Moldova would account to €250 million for 2025, of which €100 million will be provided by the EU by mid-April.

The Council today adopted a decision extending the mandate of the European Union Mission in Armenia (EUMA) for a further two years, until 19 February 2027, with a budget allocation of over €44 million for the period from 20 February 2025 until 19 February 2027. … The mandated tasks of the mission remain unchanged … .

[…] the European Union (EU) has proposed a €30 million emergency assistance package in a first step to support the Republic of Moldova in tackling the severe energy crisis provoked by Gazprom.

Russia is using Transnistria to destabilize Moldova and derail its EU accession process. While helping Chișinău tackle its energy crisis, Brussels should directly engage with Transnistria and factor it into its enlargement and economic policies.

Shutting off gas to Transnistria creates energy instability across Moldova, including but not limited to the Transnistrian region. 

On New Year's Day, Russian gas stopped flowing through Ukraine. Kyiv is calling it a "historic" day as its refusal to extend a transit agreement with Russia's Gazprom has halted the return flow of cash to fund the full-scale invasion of Ukraine. But in neighbouring Moldova, the move threatens to cause a crisis.

[…] The current gas-transit agreement between Ukraine and Russia ends on December 31 and Ukraine has said it will not extend it. The unrecognized, Russian-backed Transdniestria region depends heavily on Russian natural gas supplied via Ukraine.