Moldova

The EU is the largest provider of financial assistance to Moldova. The new Micro-Financial Assistance (MFA) package, worth €150 million in grants and loans, entered into force on 18 July 2022. The first tranche was disbursed on 01 August 2022. The EU assistance to Moldova supports the renewed agenda for the Eastern Partnership focusing on recovery, resilience and reform, linked to the country's reform commitments under the Association Agreement. Over 2014-2020 period, Moldova has benefited from more than half a billion euros in grants and €200 million in loans and grants.

Regarding medium and long-term assistance, the EU continues to work together with Moldovan authorities to implement the Economic and Investment Plan (EIP). Under the EIP, the EU will mobilise around €1.6 [in another place it says €3.4 billion] in public and private investments including for five flagships that have been identified together with the Moldovan authorities. The Plan focuses on (1) direct support for SMEs, (2) enhancement of trade, (3) increasing energy efficiency, (4) improving connectivity with Europe and (5) human capital development.

The EU supports Moldova in improving its energy resilience and in ensuring stable electricity and gas supplies. With EU assistance, Moldova has made its first purchases of gas and electricity from the EU. In 2022, successful synchronisation with the Continental European Network electric grid helped to keep country’s electricity system stable.

The EU provided a €200 million energy support package to help the country meet its gas supply needs, half of it comprising grants. Further €50 million in grants is intended to help Moldova address the negative spillover of Russia’s aggression against Ukraine. Excluding the Package, the EU’s total budget support to the country amounts to €200 million since November 2021, inclusive of €15 million rapid response measure to support Moldova’s most vulnerable groups and its energy transition.

The Energy Security Secretariat opened an office in Chisinau to assist in modernisation and increase of resilience of country’s energy sector. The ongoing works on setting up an Energy Rescue Scheme will allow donors to support the energy purchase by Moldova.

The European Commission has allocated €38 million for humanitarian operations, including €25 million announced in October 2022, to help the country cope with the flow of refugees from the war-torn Ukraine. Following Moldova’s request on 25 February 2022 to activate the EU Civil Protection Mechanism for management of migration flows, the EU provided essential items such as shelter equipment, medical supplies, power generators, as well as an advisory and coordination team of EU civil protection experts. Much-needed medical equipment – oxygen concentrators, ventilators, and patient monitors – we provided via rescEU. At the same time, country’s resilience to crisis situation, namely cyber-security and information space, and government and population managing the influx, will be supported with a rapid response measure of a budget of €8 million under EU funding instrument NDICI-GE.

Due to the high number of refugee arrivals and bordering with an active war zone, the EU stepped up its support:

• The EU Border Assistance Mission to Moldova (EUBAM) has been reinforced with €15 million.
• Moldova signed an agreement on border management cooperation with Frontex for Agency’s increased presence, technical and operational assistance.
• Mobilisation of €15 million under the EU funding instrument NDICI-GE to support dignified and efficient treatment of refugees, secure transit and repatriation of third-country nationals, in cooperation with the International Organization for Migration.
• Setting up of Commission’s Solidarity Platform helped facilitate transfers of refugees from Moldova to Member States.
• Europol has deployed to the country European Migrant Smuggling Centre (EMSC) Specialists and Firearms analysts, and Guest Officers.

Road transport agreements signed between the EU, Ukraine and Moldova will help ensure secure supply chains and food security. A €20 million grant for the modernisation of the railways will embed Moldova in the TEN-T network and will support the Solidarity Lanes initiative. Since June 2022, the EU is granting additional duty-free access for one year for several agricultural products, not yet fully liberalised under the EU-Moldova DCFTA. This helps Moldova deal with the loss of its main markets and transit hubs for their key agricultural products.