Moldova to get €250 million from EU to curb dependence on Russian energy sources

On February 4, the European Union and Moldova reached an agreement to bolster Moldova’s energy security, aiming to reduce the country's reliance on Russian energy supplies and integrate it into the EU's energy network.

According to the European Commission, Moldova will receive €250 million ($258 million) in 2025, with 40% of the funds disbursed by mid-April, Caliber.Az reports via American media.

The financial aid package comes in response to Russia’s state-owned energy giant Gazprom halting gas supplies to Moldova on January 1, following the expiration of a gas transit agreement between Russia and Ukraine.

Gazprom’s decision triggered daily electrical outages across Moldova, severely affecting the separatist pro-Russian region of Transnistria, where hundreds of thousands were left without heating and hot water last month. The supply cut was linked to an alleged $709 million debt for past gas deliveries to Moldova. The disruption also halted operations at the Kuciurgan power plant, Moldova's largest, which previously provided a significant portion of the country's electricity.

The EU’s financial support package aims to assist Moldovan consumers with soaring electricity bills, including €60 million ($62 million) earmarked specifically for 350,000 people affected in Transnistria.

Notably, Moldova, a former Soviet republic with a population of about 2.5 million, became heavily dependent on Russian natural gas after the 2022 Russian invasion of Ukraine. Since then, Moldova has accelerated efforts to diversify its energy sources amid Moscow's pressure to abandon its pro-European trajectory. The country diversified its energy sources by securing supplies from European suppliers, including the United States, Greece, and Romania, which offered more competitive pricing. Moldova also explored new routes, such as the Trans-Balkan pipeline and the vertical gas corridor through the Balkans, to enhance energy security.

By Khagan Isayev