The European Union will provide an emergency assistance package worth 30 million euros as a first step to support the Republic of Moldova in resolving the severe energy crisis caused by Gazprom. This package is intended to finance the purchase and transportation of natural gas to the Transnistrian region to restore electricity and heating supply to over 350,000 residents of the region by February 10, 2025.

In addition to facilitating the purchase and transportation of gas to Transnistria, the EU has pledged to provide Moldova with financial support in the coming weeks to mitigate the social consequences of the crisis for the country's citizens while laying the foundation for long-term energy resilience and economic growth.

EU Package for Overcoming Moldova’s Energy Crisis

The EU assistance comes as the Transnistrian region is facing a severe energy crisis. Since January 1, 2025, Gazprom has failed to fulfill its contractual obligation to supply gas to the region. As a result, the region has been forced to rely on coal and gas reserves to provide electricity and heating, which are insufficient to meet the population's needs.

The announced package will prevent further deterioration of the humanitarian situation and supply natural gas to cover immediate needs. At the same time, the option of providing coal supplies from Ukraine is also being explored. Along with facilitating gas purchase and transportation, the EU has supported the allocation of transport capacities along the entire gas delivery route from Bulgaria and Romania to the entry points of Moldova’s gas transportation system, according to an EU press release.

The proposal made on January 27 represents targeted support for Moldova, including the Transnistrian region, amounting to 30 million euros for the purchase of gas that can be used to generate electricity and heating for Transnistria, as well as electricity for the right bank. With the funding provided under this emergency plan, Moldova could purchase gas from suppliers in Ukraine and on the European market.

A larger assistance package is also being prepared to further support the entire country during this challenging period. Specifically, it will focus on mitigating the effects of the crisis, reducing pressure on energy prices, and building the foundation for long-term energy stability and resilience in Moldova. This package will be based on Moldova’s Growth Plan, which is in the final stages of completion.

Background Information

Gazprom has failed to fulfill its contractual obligations, cutting off gas supplies to Moldova’s Transnistrian region. This has triggered a severe energy crisis with massive economic and social consequences for the people of Moldova and a devastating impact on the livelihoods of the population in the Transnistrian region.

To date, the EU has already provided 240 million euros in direct budgetary support for Moldova's energy system between 2021 and 2024 to assist the most vulnerable individuals. During the 2023-2024 heating season, more than 750,000 households received compensation through the Energy Vulnerability Reduction Fund (FRVE) supported by the EU.

In addition, since 2021, the EU has provided grants worth 67 million euros, which have mobilized investments of over 640 million euros through international financial partners. These funds support Moldova’s energy efficiency in public and residential buildings and the transition to green energy. The EU is also supporting capacity building and piloting Moldova’s Residential Energy Efficiency Fund.

Moldova has also received macro-financial assistance from the EU amounting to 295 million euros since 2023, of which 220 million euros were granted as loans and 75 million euros as grants. Among other priorities, this tranche focused on energy sector reforms.

Since 2022, Moldova’s energy network has been connected to the European continental grid. On December 1, 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. In December, an agreement was reached allowing Moldova to use the unused capacity of Ukraine.

Moreover, thanks to EU support, the right bank completely transitioned away from reliance on Russian gas in 2022, at the peak of the gas supply crisis. Since then, the right bank has been supplied exclusively through EU gas markets, the source notes.