The European Union (EU) has pledged €250 million in support to Moldova, with €100 million to be made available by mid-April, the European Commission announced. The strategic agreement aims to assist Moldovans struggling with the energy crisis by mitigating energy costs for households and social institutions, and supporting business financing. Additionally, the EU will provide €60 million in aid for the Transnistrian region's energy supply, subject to certain conditions.
The support comes amidst a dispute between Moldova and Gazprom, the Russian gas giant, over payment for gas deliveries, as well as the halting of gas transit through Ukraine. The EU's comprehensive strategy will unfold in three phases, addressing immediate needs and long-term challenges.
The first phase, announced on January 27, involved €30 million in support, including €10 million for purchasing EU electricity and the remaining amount for procuring natural gas for Transnistria. The second phase, to be implemented by mid-April, will provide an additional €100 million, covering:
Financial assistance for energy efficiency measures and renewable energy projects
Support for the Moldovan energy sector's resilience and diversification
Assistance for vulnerable households and social institutions
The final phase will involve the EU and international partners financing measures and investments aimed at enhancing Moldova's energy resilience and independence, as well as reducing energy costs. This will be integrated into Moldova's growth plan reform program and implemented until the end of 2026, including the integration of the EU and Moldovan electricity grids.
The EU's €60 million funding for the Transnistrian region's energy supply is contingent upon progress in upholding fundamental freedoms and human rights. Ensuring Moldova's energy security is crucial for Europe's long-term resilience and independence from Russian dependence. This comprehensive package demonstrates our unwavering support for the most vulnerable Moldovans.
Energy Commissioner Dan Jørgensen stated this during the announcement.
Gas deliveries to Moldova have been disrupted since early January, following Ukraine's halt of transit and Moldova's inability to settle its outstanding debt with Gazprom. This has left thousands in the country, particularly in the Transnistrian region, without heating during the winter months. Meanwhile, as reported previously, the Russian-backed separatist state received 3 million cubic meters of gas on credit to alleviate the consequences of its severe energy crisis.