By Adam Aydin | 2025-04-02

PRAGUE -- The Kremlin's efforts to drag Moldova back into its grip are encountering resolute opposition from that country and the European Union (EU).

New funds will help Chisinau make socioeconomic reforms, overcome an energy crisis and protect Moldova from the Kremlin's attempts to destabilize it, say analysts and officials.

The Council of the EU on March 18 granted final approval of a €1.9 billion support package for Moldova.

The decision was the final stage after the European Parliament approved on March 11 the creation of the Reform and Growth Facility meant to advance the reforms required for Moldova to join the EU .

The €1.9 billion package will be the most financial assistance the EU has given Moldova since the country became independent in 1991.

The main purpose of the financial support -- one-quarter of which is made up of grants -- is to implement socioeconomic reforms to bring the country closer to EU membership.

In addition, according to European officials, the Reform and Growth Facility -- also known as the Growth Plan -- is meant to help Moldova build resilience in the face of threats related to Russia's aggression against Ukraine and the Kremlin's attempts to destabilize Moldova.

Mitigating the effects of war

One of the main reasons for lingering Moldovan economic doldrums is Russia's full-scale invasion of neighboring Ukraine, which has been going on for more than three years, said Christian Bolotnikov, editor-in-chief of Radio Free Europe/Radio Liberty (RFE/RL)'s Moldovan service.

Direct threats related to the fighting in Ukraine, along with the long-standing deployment of Russian troops in the separatist region of Transnistria, make Moldova unattractive for investors, whom the country's economy desperately needs, he told Kontur.

"The government believes that the main reason for low [Moldovan] economic efficiency is that Moldova borders Ukraine -- a country where a war is raging," Bolotnikov said.

"The unstable security situation is keeping investors away from Moldova. On top of that, the Russian army is in our country, in Transnistria."

Brussels and Chisinau are expecting the creation of the Reform and Growth Facility to help mitigate the effects of the war.

"A substantial portion of this money will go toward supporting small businesses," Bolotnikov said. "The government should develop a comprehensive plan of financial and technical support for small businesses with the goal of motivating them to invest in the economy and attract foreign investors."

Solving the energy, economic crises

Another consequence of the war in Ukraine was the energy crisis Moldova faced last winter.

The Russian state energy giant Gazprom on January 1 announced it was suspending natural gas supplies to Moldova even though the supply contract was valid through the end of 2026.

The move forced the country, which depends on Russian gas supplies, to adopt emergency energy conservation measures.

For several weeks, rolling blackouts lasting several hours a day prevailed throughout the country.

Chisinau had been expecting this turn of events and had the foresight to reach an agreement last December to buy Romanian electricity.

However, Moldova's current technical capabilities allow it to import no more than one-quarter of its power consumption from Romania.

"The financial support package will give Moldova resources for projects to develop energy infrastructure, such as connecting to Romania's electrical grids, which will help reduce the country's dependence on Russian energy," Bolotnikov said.

The EU and Moldova say that in addition to the problems in the energy sector, other infrastructure projects are needed to improve the economy.

These include building new roads and bridges that will connect Moldova to Romania, thereby boosting transport and trade between Moldova and the EU.

Chisinau said the Growth Plan will also help modernize the education system, industry and agriculture.

Opposing Russian propaganda

Moldovan President Maia Sandu called the EU decision to provide €1.9 billion in aid a "milestone" and "a strong vote of confidence in our future" in an English-language post on X March 11.

Unlike previous support packages, these funds are being provided under the same terms that apply to EU members. However, before it receives the first tranche in late April, Chisinau must present a cogent action plan for using the funds efficiently.

Bolotnikov said it will be challenging to implement the intended projects because time is not on the government's side.

"The next parliamentary elections are scheduled for September-October," he said. "That means that the government has only five or six months to show how efficiently this money is being used."

"There's a risk that after the next elections Moldova will have a pro-Russia government, and that will put a stop to the support package," Bolotnikov said, pointing out that when Moldova held a referendum last October on joining the EU, regions that had received sizable sums in European assistance voted against joining the EU.

This trend reflected the influence of Russian propaganda, he said.

"I think a lot will depend on how much Chisinau, and to a certain extent the EU, will be able to effectively communicate to the populace how important the reforms and European support are," Bolotnikov said.

"To do that, we need to counter Russian propaganda and disinformation."