Energy crisis in Moldova and Transnistria: EU unveils 250-million package to counter Russia

Brussels – A proxy energy war between Russia and the EU is underway in the Republic of Moldova. After the decision by Kyiv to stop the transit of Russian gas through Ukraine, Gazprom unilaterally cut off, without exploiting alternative routes such as the Trans-Balkan pipeline, supplies to Transnistria, a Russophile breakaway state of Moldova that self-proclaimed itself a republic in 1990, leaving the region’s more than 350,000 inhabitants without light and heat. After an initial emergency package of 30 million announced last Jan. 27, Brussels and Chisinau agreed today (Feb. 4) on a two-year strategy that, in addition to curbing the soaring prices of Moldovan citizens’ bills, would, in the long run, allow the former Soviet republic to break free from Kremlin energy blackmail.

At a joint press conference in the Moldovan capital, EU Commissioner for Enlargement Marta Kos and Moldova’s President Maia Sandu announced a total €250 million package for 2025 to support the EU candidate country, 100 million of which will be in place by mid-April. Brussels has also put €60 million on the table for Transnistria, provided the autonomous region adopts several measures on fundamental freedoms and human rights.

The strategy that Kos and Sandu outlined has the two-fold objective of “decoupling Moldova from the insecurities of Russian supply of energy and fully integrating it in the EU energy market,” the Enlargement Commissioner said, thus finally freeing the country from Moscow’s undue interference. “Moldova has undergone many tests, but we have never been alone. The Kremlin continues to use energy as a weapon of blackmail. With the EU’s support, we will overcome this crisis and strengthen the country’s energy security,” said the pro-European Sandu. As of 2022, the Moldovan electricity system has been connected to the European continental power grid. On Dec. 1, 2024, export capacity from the EU to Ukraine and Moldova was increased from 1.7 to 2.1 GW, including 315 MW for Chisinau.

In the short term, the package will support the energy costs of Moldavians on the Right Bank of the Dniester River (separating the Republic of Moldova from Transnistria). The European Commission calculates that the 250 million will allow to compensate all excess electricity costs for all households for up to 110 kWh every month until Dec. 31, 2025.  It will also include a fund to alleviate the energy bills of the most exposed households and compensate for all the increase in electricity costs for kindergartens, schools, and hospitals. An additional €15 million of funding will go to supporting the energy bills of agro-food and manufacturing companies.

In addition, through the mobilization of international financial institutions, additional financing of 50 million euros will be available for sustainable investments in energy efficiency projects by local public authorities, households, and small and medium-sized enterprises.

In the long run, EU support should enable Moldova to improve its energy security through investments and energy transition reforms and to “ensure the full phase-out  of Russian supply of energy resources.” Investments and reforms will be included in the Reform Agenda under the Moldova Growth Plan and will be implemented until the end of 2026. Commissioner Kos also confirmed the €1.8 billion growth plan for Moldova, with the first funds coming this year. Reiterating the European commitment to Moldova’s accession to the EU, she emphasized that the process could be completed within the term of the current Commission.