The European Union has announced a €30 million emergency assistance package to help Moldova address its severe energy crisis, including the separatist Transnistrian region.
The European Union (EU) has announced a €30 million emergency assistance package to help address the severe energy crisis in the Republic of Moldova, including the separatist Transnistrian region. This initiative comes as a response to Russian gas company ‘Gazprom‘s failure to supply natural gas to the area.’.
Moldova, a landlocked country in Eastern Europe, has been struggling with an energy crisis due to its reliance on Russian gas.
In 2022, the country faced a severe shortage of electricity during peak summer months, resulting in power cuts and economic losses.
Moldova's energy infrastructure is outdated, and the country relies heavily on imports from Russia, making it vulnerable to supply disruptions.
The crisis has also highlighted the need for diversification of energy sources and investment in renewable energy.
The EU’s intervention aims to prevent the humanitarian crisis from deteriorating further by securing natural gas to cover immediate demand and facilitating the allocation of transmission capacity for gas delivery. The package also explores the possibility of coal deliveries from Ukraine and includes support for electricity transmission from the Moldovan State District Power Plant, located on the left bank to the right bank of the Dniester River.
The EU’s commitment extends beyond immediate relief, with a broader financial support package for Moldova in the works. This comprehensive energy support package will address the social impact of the crisis and promote long-term energy resilience and economic growth, building on Moldova’s growth plan. The EU has already provided significant support to Moldova, including €240 million in direct budget support for the energy sector and assistance to over 750,000 households through the ‘Energy Vulnerability Reduction Fund.’.
To date, the EU has leveraged €67 million in grants to mobilize over €640 million in investments for energy efficiency and green transition. Additionally, the EU has provided macro-financial assistance amounting to €295 million since 2023. The connection of Moldova’s grid to the European continental electricity network and increased export capacity from the EU have supported the country’s energy security.
European Commission High Representative for Foreign Affairs and Security Policy/Vice-President ‘Kaja Kallas stated,’ ‘At the height of winter, the Kremlin is using energy to blackmail the people of Moldova, which is frankly outrageous albeit unsurprising. The EU will provide €30 million to help Moldova buy and transport national gas to their people. In such times of need, the EU will always support its friends and allies.’
