The EU offers emergency support to tackle the energy crisis in Moldova

This article is brought to you in association with the European Commission.

Today, 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. Through this package, the EU stands ready to finance the purchase and transport of natural gas to the Transnistrian region, to help restore electricity and heating for the region’s more than 350.000 inhabitants until 10 February 2025. The package can also allow for electricity supply from the Left Bank to the Right Bank.

In addition to facilitating the purchase and transport of gas to Transnistria, the EU is committed to deliver in the next weeks a financial support package for Moldova aiming to mitigate the social consequences of the crisis for the citizens of the Republic of Moldova, while laying the groundwork for long-term energy resilience and economic growth in Moldova.

European Commission President Ursula von der Leyen said: “In the middle of winter, more than three hundred fifty thousand residents in the Transnistrian region are left in the dark and in the cold because Russia decided to stop its gas deliveries. We simply cannot accept that people on our continent do not have access to the most basic services. But hard times reveal true friends. That is why we are throwing today a lifeline. We will deliver gas to the people of Transnistria and restore their access to electricity and heating.” 

EU package to tackle Moldova’s energy crisis

This assistance package comes as the Transnistrian region is going through a severe energy crisis. Since 1 January 2025, Gazprom has not honoured its contractual obligation to channel gas to the region. As a result, the region has to rely on coal and gas reserves to supply electricity and heating to its population which is insufficient to cover their needs.

Today’s package will avoid further deterioration of the humanitarian situation and provide natural gas to cover the immediate needs. The option to provide support via coal deliveries from Ukraine is also being explored. In addition to facilitating the purchase and transport of gas, the EU has also supported the allocation of transmission capacity along the entire gas delivery route from Bulgaria and Romania to the entry points of the Moldovan gas transmission system.

Today’s proposal represents a targeted support to Moldova, including the Transnistrian region, of €30 million to purchase gas which can be used to produce electricity and heating for the Transnistrian region and electricity to the Right Bank. Through the funding provided under this emergency plan, gas could be purchased by Moldova from providers in Ukraine and the European market.

A broader assistance package is also being prepared to further support the entire country in these challenging times. More specifically, a more comprehensive EU energy support package will aim to mitigate the consequences of the crisis and to diminish the pressure on energy prices while laying the groundwork for long-term energy stability and resilience in Moldova. It will build on Moldova’s Growth Plan which is being finalised.

Background

Gazprom has not honoured its contractual obligations, stopping supplies of gas to the Transnistrian region of Moldova. As a result, a serious energy crisis has broken out with tremendous economic and social consequences for inhabitants in Moldova and a devastating impact on the livelihood of people in the Transnistrian region.

So far, the EU has already provided €240 million in direct budget support to Moldova’s energy system from 2021 to 2024 to help the most vulnerable people. In the 2023-2024 heating season, more than 750 000 households have benefited from compensation through the EU-supported Energy Vulnerability Reduction Fund (EVRF).

In addition, since 2021, the EU has provided €67 million in grants which have mobilised more than €640 million investments through the international financial partners. These support Moldova’s energy efficiency in public and residential buildings and the transition to green energy. The EU also supports building capacity and piloting the Moldovan Residential Energy Efficiency Fund. Moldova has also benefitted from EU macro-financial assistance worth €295 million since 2023, of which €220 million was provided in loans and €75 million in grants. Among other priorities, the instalment focused on energy sector reforms.

Since 2022, Moldova’s grid has been connected to the European continental electricity network. On 1 December 2024, the export capacity from the EU to Ukraine and Moldova was increased from 1.7 to 2.1 GW, including 315 MW for Moldova. Later in December, an agreement was reached whereby Moldova could benefit from capacities unused by Ukraine. 

Furthermore, with the help of the EU, the Right Bank has been able to fully diversify away from Russian gas supplies in 2022, at the peak of the gas supply crisis. Since then, the Right Bank is exclusively supplied from EU gas markets.